Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2021 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38904 |
Entity Registrant Name | FLEX LNG Ltd. |
Entity Incorporation, State or Country Code | D0 |
Entity Address, Address Line One | Par-La-Ville Place |
Entity Address, Address Line Two | 14 Par-La-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM08 |
Entity Address, Country | BM |
Title of 12(b) Security | Ordinary Shares, par value $0.10 per share |
Trading Symbol | FLNG |
Security Exchange Name | NYSE |
Common Stock, Shares, Outstanding | 53,130,584 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001772253 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | Par-La-Ville Place |
Entity Address, Address Line Two | 14 Par-La-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM08 |
Entity Address, Country | BM |
Contact Personnel Name | James Ayers, Company Secretary |
City Area Code | 441 |
Local Phone Number | 295 69 35 |
Contact Personnel Fax Number | 295 3494 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 1572 |
Auditor Location | Oslo, Norway |
Auditor Name | Ernst & Young AS |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Vessel operating revenues | $ 343,448 | $ 164,464 | $ 119,967 |
Operating expenses | |||
Voyage expenses | (3,334) | (3,697) | (6,284) |
Vessel operating expenses | (61,237) | (36,999) | (22,423) |
Administrative expenses | (7,887) | (6,302) | (7,506) |
Depreciation | (69,833) | (41,846) | (28,747) |
Operating income | 201,157 | 75,620 | 55,007 |
Other income/(expenses) | |||
Interest income | 41 | 327 | 1,073 |
Interest expense | (56,221) | (41,805) | (33,875) |
Write-off of debt issuance costs | (1,209) | 0 | (3,388) |
Gain/(loss) on derivatives | 18,399 | (25,182) | (1,555) |
Other financial items | 137 | (771) | (113) |
Income before tax | 162,304 | 8,189 | 17,149 |
Income tax expense | (99) | (84) | (182) |
Net income | $ 162,205 | $ 8,105 | $ 16,967 |
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $ 3.04 | $ 0.15 | $ 0.31 |
Diluted earnings per share (in dollars per share) | $ 3.04 | $ 0.15 | $ 0.31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income for the year | $ 162,205 | $ 8,105 | $ 16,967 |
Other comprehensive income/(loss) | 0 | 0 | 0 |
Total comprehensive income | $ 162,205 | $ 8,105 | $ 16,967 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 200,652 | $ 128,878 |
Restricted cash | 518 | 84 |
Inventory | 6,453 | 3,656 |
Receivables due from related parties | 228 | 166 |
Other current assets | 17,040 | 25,061 |
Total current assets | 224,891 | 157,845 |
Non-current assets | ||
Derivative instruments | 5,862 | 109 |
Vessel purchase prepayments | 0 | 289,600 |
Vessels and equipment, net | 2,342,165 | 1,856,461 |
Other fixed assets | 3 | 5 |
Total non-current assets | 2,348,030 | 2,146,175 |
Total Assets | 2,572,921 | 2,304,020 |
Current liabilities | ||
Current portion of long-term debt | (81,472) | (64,466) |
Derivative instruments | (4,764) | (23,434) |
Payables due to related parties | (348) | (312) |
Accounts payable | (2,016) | (3,373) |
Other current liabilities | (42,987) | (40,247) |
Total current liabilities | (131,587) | (131,832) |
Non-current liabilities | ||
Long-term debt | (1,551,947) | (1,337,013) |
Total non-current liabilities | (1,551,947) | (1,337,013) |
Total liabilities | (1,683,534) | (1,468,845) |
Equity | ||
Share capital (2021: 54,110,584 shares issued (2020: 54,110,584), par value $0.10 per share) | (5,411) | (5,411) |
Treasury shares at cost (December 31, 2021: 980,000 shares repurchased (December 31, 2020: 202,797)) | 9,449 | 1,661 |
Additional paid in capital | (1,189,060) | (1,190,333) |
Accumulated deficit | 295,635 | 358,908 |
Total equity | (889,387) | (835,175) |
Total Liabilities and Equity | $ (2,572,921) | $ (2,304,020) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Shares issued (in shares) | 54,110,584 | 54,110,584 |
Par value (in USD per share) | $ 0.10 | $ 0.10 |
Treasury stock (in shares) | 980,000 | 202,797 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income | $ 162,205 | $ 8,105 | $ 16,967 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 69,833 | 41,846 | 28,747 |
Write-off of debt issuance costs | 1,209 | 0 | 3,388 |
Amortization of debt issuance costs | 4,937 | 2,398 | 1,149 |
Share-based payments | (1,273) | 284 | 324 |
Foreign exchange loss/(gain) | 179 | 1,246 | (42) |
Change in fair value of derivative instruments | (24,423) | 21,575 | 1,749 |
Other | (4,404) | 4,804 | 8 |
Changes in operating assets and liabilities, net: | |||
Inventory | (2,797) | (970) | (1,771) |
Trade accounts receivable, net | (1,220) | 1,375 | (5,425) |
Accrued income | (981) | (3,490) | (510) |
Prepaid expenses | 8,857 | (8,556) | (2,270) |
Other receivables | 1,365 | (2,599) | (893) |
Receivables due from related parties | (62) | 149 | 1,405 |
Payables due to related parties | 36 | 216 | (110) |
Accounts payable | (1,357) | 2,791 | (10) |
Accrued expenses | (1,406) | 7,086 | 472 |
Deferred charter revenue | 1,532 | 12,766 | 10,016 |
Other current liabilities | 2,844 | 48 | (6) |
Provisions | (230) | 230 | (1,662) |
Net cash provided by operating activities | 214,844 | 89,304 | 51,526 |
Investing activities | |||
Purchase of other fixed assets | (4) | (3) | (10) |
Vessel purchase prepayments | 0 | (125,800) | 0 |
Purchase of vessels and equipment | (265,930) | (565,590) | (291,532) |
Net cash used in investing activities | (265,934) | (691,393) | (291,542) |
Financing activities | |||
Purchase of treasury shares | (7,788) | (1,661) | 0 |
Repayment of long-term debt | (72,186) | (35,600) | (29,456) |
Drawdown of revolving credit facilities | 340,266 | 48,684 | 0 |
Repayment of revolving credit facilities | (297,895) | (49,342) | (50,000) |
Prepayment of long-term debt | (120,313) | 0 | (294,000) |
Proceeds from long-term debt | 383,290 | 669,600 | 697,879 |
Financing costs | (3,339) | (17,542) | (5,014) |
Cash dividends paid | (98,932) | (10,818) | (5,411) |
Net cash provided by financing activities | 123,103 | 603,321 | 313,998 |
Effect of exchange rate changes on cash | 195 | (1,368) | 19 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 72,208 | (136) | 74,001 |
Cash, cash equivalents and restricted cash at the beginning of the period | 128,962 | 129,098 | 55,097 |
Cash, cash equivalents and restricted cash at the end of the period | 201,170 | 128,962 | 129,098 |
Supplemental Information | |||
Interest paid | (49,002) | (37,075) | (35,955) |
Income tax paid | $ (145) | $ (176) | $ (58) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share capital | Treasury shares | Additional paid in capital | Accumulated deficit |
Balance at beginning of year (in shares) at Dec. 31, 2018 | 54,099,929 | ||||
Balance at beginning of year at Dec. 31, 2018 | $ 5,410 | $ 0 | $ 1,189,665 | $ (367,751) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued (in shares) | 10,655 | ||||
Shares repurchased (in shares) | 0 | ||||
Shares issued | $ 1 | 125 | |||
Shares repurchased | 0 | ||||
Share-based payments | 259 | ||||
Net income | $ 16,967 | 16,967 | |||
Dividends paid | (5,411) | ||||
Balance at end of year (in shares) at Dec. 31, 2019 | 54,110,584 | ||||
Balance at end of year at Dec. 31, 2019 | 839,265 | $ 5,411 | 0 | 1,190,049 | (356,195) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued (in shares) | 0 | ||||
Shares repurchased (in shares) | (202,797) | ||||
Shares issued | $ 0 | 0 | |||
Shares repurchased | (1,661) | 0 | |||
Share-based payments | 284 | ||||
Net income | 8,105 | 8,105 | |||
Dividends paid | (10,818) | ||||
Balance at end of year (in shares) at Dec. 31, 2020 | 53,907,787 | ||||
Balance at end of year at Dec. 31, 2020 | 835,175 | $ 5,411 | (1,661) | 1,190,333 | (358,908) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued (in shares) | 0 | ||||
Shares repurchased (in shares) | (777,203) | ||||
Shares issued | $ 0 | 0 | |||
Shares repurchased | (7,788) | 0 | |||
Share-based payments | (1,273) | ||||
Net income | 162,205 | 162,205 | |||
Dividends paid | (98,932) | ||||
Balance at end of year (in shares) at Dec. 31, 2021 | 53,130,584 | ||||
Balance at end of year at Dec. 31, 2021 | $ 889,387 | $ 5,411 | $ (9,449) | $ 1,189,060 | $ (295,635) |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
General | GENERALFLEX LNG Ltd. ("FLEX LNG" or the "Company") is a limited liability company incorporated in Bermuda. The Company is currently listed on the Oslo and New York Stock Exchanges under the symbol "FLNG". The Company's activities are focused on seaborne transportation of liquefied natural gas ("LNG") through the ownership and operation of fuel efficient, fifth generation LNG carriers. As of December 31, 2021, the Company has 13 LNG carriers in operation (our "Fleet"). Our Fleet consists entirely of modern, next generation, large LNG carriers with two stroke engines: nine vessels with M-type Electronically Controlled Gas Injection ("MEGI"); and four vessels with Generation X Dual Fuel propulsion systems. Three of our MEGI vessels are equipped with Full Re-liquefaction Systems and four of our MEGI vessels are equipped with Partial Re-liquefaction Systems, which reduces the active boil off rates achieved. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis for Preparation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. Reporting Currency and Presentation Currency The Company's presentation and reporting currency is USD. The Company's primary economic environment is the international shipping market in which revenues are primarily settled in USD. The Company's most significant assets and liabilities are also paid for and settled in USD. Our expenses, however, are in the currency invoiced by each supplier. Foreign currency transactions are translated into the functional currency at the exchange rate in effect at the date of the transaction. Monetary items are translated at the period end exchange rate, non-monetary items that are measured at historical cost are translated at the rate in effect on the original transaction date, and non-monetary items that are measured at fair value are translated at the exchange rate in effect at the time when the fair value was determined. Foreign exchange gains and losses resulting from the settlement of such cash transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Basis of Consolidation The Company's consolidated financial statements comprise FLEX LNG and its directly wholly owned subsidiaries. Details on the Company's significant subsidiaries are provided in Note 4. Intra-group transactions and balances, including internal profits and unrealized gains and losses, have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, the following: fair value of derivative instruments; initial dry-dock cost; vessel impairment assessment; and the expected useful lives of our vessels. Actual results could differ from those estimates. Fair Value Measurements The inputs to the fair value calculations are based on observable market data when available, but where this is not achievable; a degree of judgment is required in establishing fair values. Changes in these assumptions could impact the reported fair value, as detailed in Note 16. Segment Reporting Our chief operating decision maker ("CODM") measures performance based on our overall return to shareholders based on consolidated net income. Although separate vessel financial information is available, the CODM internally evaluates the performance of the Company as a whole and not on the basis of separate business units or different types of charters. As a result, the Company has determined that it operates as one reportable segment. Since the Company's vessels regularly move between countries in international waters over many trade routes, it is neither practical nor meaningful to assign revenues or earnings from the transportation of international LNG by geographic area. For the year ended December 31, 2021, we derived our operating revenues from fifteen customers, with our top four customers accounting for 20.8%, 16.6%, 15.3% and 13.4% of our consolidated revenues, equivalent to 66.1% of our consolidated revenues. During this period, no other customer accounted for over 10% of our consolidated revenues. For the year ended December 31, 2020, we derived our operating revenues from fifteen customers, with our top three customers accounting for 28.6%, 28.6% and 11.9% of our consolidated revenues, equivalent to 69.1% of our consolidated revenues. During this period, no other customer accounted for over 10% of our consolidated revenues. Accounting for Revenue and Related Expenses The Company employs all of its vessels on time charter contracts, which the Company has established to contain a lease since the vessel is a specified asset, the charterer has the right to direct the use of the vessel and there are no substantive substitution rights. Revenue from time charter contracts are recognized as operating leases under ASC 842 Leases . The Company receives a fixed or variable, indexed on market rates, charter hire per day of on-hire whereby revenue is recognized and recorded on an accrual basis over the term of the charter as service is provided, including option periods if reasonably certain to be exercised. If the Company receives a lump sum re-positioning fee or fixed ballast bonus, which is probable at the commencement of the lease, this is recognized as part of the lease payments over the course of the time charter on a straight-line basis at the commencement of the lease. If the Company receives a lump sum ballast bonus, which is not probable at the commencement of the lease, then this is recognized as a variable lease payment from the date that the change in facts and circumstances occur. The variable lease payment is therefore recognized on a straight line basis from the date that the re-delivery port is declared and probability of occurrence is determined, to the date of arrival at the re-delivery port. If there is an option under a charter party for the lessee to extend the charter, the Company will assess the likelihood of the charterer exercising the extension option at inception of the lease in order to determine the lease term. If the option period is not included in the initial lease term and the charterer declares such option, the Company will consider the declaration of an option as a lease modification. The Company will remeasure the total minimum lease payments from the date of declaration of the option, adjusted for any prepaid or accrued rent from the original contract, and recognize this on a straight line basis to the date of arrival at the re-delivery port. Under a time charter agreement, the Company is responsible for both the operation and maintenance of the vessel which would be considered to be a non-lease performance obligation. The Company has chosen to elect the practical expedient of ASC 842 to not separate the lease and non-lease components and instead combine these as a single performance obligation as the Company considers the lease component to be the predominant component of the contract, for which ASC 842 will be applied. Costs incurred during the leasing period for the maintenance and operation of the vessels are expensed as incurred as the timing and pattern of transfer of the components are identical to the operating lease revenue earned from the charter hire. Trade Accounts Receivables Trade receivables are presented net of allowance for doubtful balances. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. Lease The Company assesses whether a contract contains a lease at inception of the contract. The assessment involves the exercise of judgement about whether it depends on a specified asset, whether the Company obtains substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct the use of the asset. The Company does not separate lease components from non-lease components as lessee. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The standard provides practical expedients for an entity’s ongoing accounting. The Company has elected the short-term lease recognition exemption for leases that qualify, meaning that the Company does not recognize Right Of Use assets or lease liabilities for these leases where the Company is the lessee. Interest Expense Interest expenses are expensed as incurred except for interest expenses that are capitalized for qualifying assets that require a period of time to get them ready for their intended use. Interest expenses are capitalized until the qualifying asset is ready for use. The Company does not capitalize amounts beyond the actual interest expense incurred in the period. If the Company's financing plans associate a specific borrowing with a qualifying asset, the Company uses the rate on that borrowing as the capitalization rate to be applied to that portion of the average accumulated expenditures for the asset that does not exceed the amount of that borrowing. If average accumulated expenditures for the asset exceed the amounts of specific new borrowings associated with the asset, the capitalization rate to be applied to such excess shall be a weighted average of the rates applicable to other borrowings of the Company. Income Taxes Income taxes are provided for based upon the tax laws and rates in effect in the countries in which the Company's ocean-going LNG carriers' operations were conducted and income was earned. Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company's assets and liabilities using the applicable jurisdictional tax in effect at the year end. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized (Note 6). Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements based on U.S. GAAP guidance. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Vessels Vessels are carried at historical cost less accumulated depreciation and impairment adjustments, if any. The depreciation on vessels is reviewed annually to ensure that the method and period used reflect the pattern in which the asset's future economic benefits are expected to be consumed. The gross carrying amount of the vessel is the purchase price, including duties/taxes, borrowing costs and any other direct costs attributable to bringing it to the location and condition necessary for the vessels intended use. Capitalization of costs will cease once the vessel is in the location and condition necessary for it to be able to operate in the manner consistent with its intended design. On delivery, the total acquisition costs of the vessel will be segregated to groups of components that have different expected useful lives. The different groups of components will be depreciated over their expected useful lives. Subsequent costs, such as repair and maintenance costs, are recognized in the income statement as incurred. Each vessel is required to be dry-docked every five years. The Company capitalizes costs associated with the dry-docking in accordance with ASC Topic 360 Property, Plant and Equipment and amortizes these costs on a straight-line basis over the period to the next expected dry-docking. Amortization of dry-docking costs is included in depreciation in the Income Statement. The Company has adopted the "built in overhaul" method for when a vessel is newly acquired, or constructed, whereby a proportion of the cost of the vessel is allocated to the components expected to be replaced at the next dry-docking based on the expected costs relating to the next dry-docking. Dry-docking costs are included within operating activities on the statement of cash flows. The cost of the vessel, less their estimated residual value, is depreciated on a straight-line basis over the asset's estimated useful economic life. The residual value for owned vessels is calculated by multiplying the lightweight tonnage of the vessel by the estimated scrap value per tonne. The cost of dry-dock is depreciated on a straight-line basis over the assets estimated useful life. The following useful lives have been used: Vessels: 35 years Dry-docking: 5 years Impairment of Long-lived Assets The carrying values of long-lived assets held and used by the Company are reviewed quarterly or whenever events or circumstances indicate that the carrying amount of an asset may no longer be recoverable. If such impairment indicators are present, the Company assesses The Company assesses recoverability of the carrying value of each asset or newbuilding on an individual basis by estimating the future net undiscounted cash flows expected to result from the asset, including eventual disposal. In developing estimates of future undiscounted cash flows, the Company must make assumptions about future performance, with significant assumptions being related to charter rates, ship operating expenses, utilization, dry-docking requirements, residual values and the estimated remaining useful lives of the vessels. These assumptions are based on historical trends as well as future expectations. If the future net undiscounted cash flows are less than the carrying value of the asset, or the current carrying value plus future newbuilding commitments, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value. In addition, long-lived assets to be disposed of are reported at the lower of carrying amount and fair value less estimated costs to sell. Vessel Purchase Prepayments Vessel purchase prepayments relate to amounts advanced under vessel purchase agreements or deposited as part of a pre-positioning of payments due on vessels and equipment, net, where title of the vessel does not transfer to the Company until the date of delivery. Inventories Inventories comprise principally of fuel and lubricating oils and are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Cash and Cash Equivalents Cash includes cash in hand and in the Company's bank accounts. Cash equivalents are short-term liquid investments with original maturities of three months or less. Restricted Cash Restricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. The cash is restricted by law for the Norwegian tax authorities in relation to social security tax and personal income tax of employees in the Company's subsidiary, Flex LNG Management AS, and is settled every second month. Debt Issuance Costs Direct incremental costs relating to obtaining a loan are deferred and amortized over the team of the loan using the effective interest rate method. Amortization of debt issuance costs is included under interest expense. The Company has recorded debt issuance costs as a direct reduction from the carrying amount of the related debt in the balance sheet. Derivative Instruments Our derivative instruments relate to interest-rate swaps, which are considered to be an economic hedge. However, these have not been designated as hedges for accounting purposes. These transactions involve the conversion of floating rates into fixed rates over the life of the transactions without an exchange of underlying principal. The fair value of the interest rate swap contracts are recognized as assets or liabilities. Changes in the fair value of these derivatives are recorded in gain/(loss) on derivatives in our consolidated statement of operations. Cash outflows and inflows resulting from economic derivative contracts are presented as cash flows from operations in the consolidated statement of cash flows. Share-based Compensation The Company accounts for share-based payments in accordance with ASC Topic 718 Compensation - Stock Compensation , under which the fair value of issued stock options is expensed over the period in which the options vest under the simplified method. Share-based compensation represents the cost of vested and non-vested shares and share options granted to employees and directors for their services, and are included in administrative expenses in the consolidated statements of operations. The fair value of share options grants is determined with reference to option pricing models, and depends on the terms of the granted options. The fair value is recognized as compensation expense over the requisite service period. Earnings Per Share Basic earnings per share ("EPS") are computed based on the income available to ordinary shareholders divided by the weighted average number of shares outstanding. Diluted EPS is computed by dividing the net income available to ordinary shareholders by the weighted average number of ordinary shares and dilutive ordinary share equivalents then outstanding. If in the period there is a loss, then any potential ordinary shares have been excluded from the calculation of diluted loss per share. Treasury Shares When the Company repurchases its share capital, the amount of the consideration paid is recognized as a deduction from equity and classified as treasury shares, pending future use. If the Company acquires and retains treasury shares, the consideration paid is directly recognized in equity. The weighted average treasury shares reduce the number of shares outstanding used in calculating earnings per share and they have a dilutive effect on the diluted earnings per share. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2020-04, “ Reference Rate Reform (Topic 848) ” (“ASU 2020-04”), which provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of the London Interbank Offered Rate ("LIBOR") as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. In addition, in January 2021, the FASB issued another ASU (ASU No. 2021-01) with respect to the Reference Rate Reform (Topic 848) . The amendments in this Update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU 2020-4 was effective for the Company beginning on March 12, 2020 and the Company will apply the amendments prospectively through December 31, 2022. As of December 31, 2021, the Company has not made any contract modification to replace the reference rate in any of its agreements and had evaluated that there was no impact to its consolidated financial statements. The Company has reviewed all other recent issued accounting pronouncements and has not identified other standards that would have a material impact on the Company's current accounting policies. |
SIGNIFICANT SUBSIDIARIES
SIGNIFICANT SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Subsidiaries | SIGNIFICANT SUBSIDIARIES As of December 31, 2021, the Company had the following significant subsidiaries: Company Country of registration Main operations Ownership share Voting share Flex LNG Chartering Limited United Kingdom Chartering services 100% 100% Flex LNG Management AS Norway Management services 100% 100% Flex LNG Bermuda Management Limited Bermuda Management services 100% 100% Flex LNG Management Limited Isle of Man Management services 100% 100% Flex LNG Fleet Limited Bermuda Holding company 100% 100% Flex LNG Endeavour Limited Marshall Islands Shipping 100% 100% Flex LNG Enterprise Limited Marshall Islands Shipping 100% 100% Flex LNG Ranger Limited Marshall Islands Shipping 100% 100% Flex LNG Rainbow Limited Marshall Islands Shipping 100% 100% Flex LNG Constellation Limited Marshall Islands Shipping 100% 100% Flex LNG Courageous Limited Marshall Islands Shipping 100% 100% Flex LNG Aurora Limited Marshall Islands Shipping 100% 100% Flex LNG Amber Limited Marshall Islands Shipping 100% 100% Flex LNG Resolute Limited Marshall Islands Shipping 100% 100% Flex LNG Reliance Limited Marshall Islands Shipping 100% 100% Flex Freedom Limited Marshall Islands Shipping 100% 100% Flex Vigilant Limited Marshall Islands Shipping 100% 100% Flex Volunteer Limited Marshall Islands Shipping 100% 100% |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share amounts are calculated by dividing the net income for the year by the weighted average number of ordinary shares issued and outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net income by the weighted average number of shares issued and outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. If in the period there is a loss then any potential ordinary shares have been excluded from the calculation of diluted loss per share. The following reflects the net income and share data used in the earnings per share calculation. (in thousands of $, except share data) 2021 2020 2019 Net income 162,205 8,105 16,967 Weighted average number of ordinary shares 53,319,408 54,099,504 54,106,171 Share options 20,884 174,689 141,000 Weighted average number of shares, adjusted for dilution 53,340,292 54,274,193 54,247,171 Earnings per share - Basic and diluted 3.04 0.15 0.31 Dividends declared per share 1.85 0.20 0.10 |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX Bermuda Under current Bermuda law, the Company is not required to pay taxes in Bermuda on either income or capital gains. The Company has received written assurance from the Minister of Finance in Bermuda that, in the event of any such taxes being imposed, the Company will be exempted from taxation until March 31, 2035. United States For the years ended December 31, 2021 and 2020, the Company did not accrue U.S. income taxes because the Company was able to satisfy the requirements of the exemption from gross basis tax under Section 883 of the U.S. Internal Revenue Code. Under Section 863(c)(2)(A) of the Internal Revenue Code, 50% of all transportation revenue attributable to transportation which begins or ends in the United States shall be treated as from sources within the United States where no Section 883 exemption is available. Such revenue is subject to 4% tax. For the year ended December 31, 2021, 2020 and 2019, the Company accrued federal income tax of $nil, $nil and $nil respectively. Other Jurisdictions Certain of the Company's subsidiaries in Norway and the United Kingdom are subject to income tax in their respective jurisdictions. The taxes paid by subsidiaries of the Company that are subject to income tax have been disclosed in the tables below. The Company does not have any unrecognized tax benefits, material accrued interest or penalties relating to income taxes. The Norwegian income tax returns could be subject to examination by Norwegian tax authorities going back ten years or more. In the United Kingdom, the tax authorities can investigate as far back as 20 years if they suspect tax evasion. More commonly, the United Kingdom may investigate for (i) careless tax returns for up to six years and (ii) innocent errors for up to four years. In the United States, the Internal Revenue Service ("IRS") may audit tax returns filed within the last three years. If the IRS identifies a substantial error, the IRS may add additional years, which in most cases does not extend beyond six years. None of FLEX LNG or its subsidiaries is undergoing tax audits in any applicable tax jurisdictions. The table below shows the components of income tax year ended December 31, 2021, 2020 and 2019: (in thousands of $) 2021 2020 2019 Current income tax expense (71) (89) (118) Adjustments in respect of current income tax of previous years (28) 5 (64) Income tax expense reported in the income statement (99) (84) (182) A reconciliation between the tax expense and the product of the accounting profit multiplied by the Bermuda domestic tax rate for the year ended December 31, 2021, 2020 and 2019 is as follows: (in thousands of $) 2021 2020 2019 Income before tax 162,304 8,189 17,149 Income tax at 0% (2020: 0% (2019: 0%)) — — — Effect of higher foreign tax rates (99) (84) (182) Income tax expense at effective rate of 0.1% (2020: 1.0% (2019: 1.1%)) (99) (84) (182) |
VESSEL PURCHASE PREPAYMENTS
VESSEL PURCHASE PREPAYMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Vessel Purchase Prepayments | VESSEL PURCHASE PREPAYMENTS (in thousands of $) 2021 2020 At January 1 289,600 349,472 Deposits to vessel purchase prepayments — 125,800 Transfers to vessels and equipment, net (289,600) (185,672) At December 31 — 289,600 Between July and October 2020, we transferred an aggregate of $(185.7) million from Vessel purchase prepayments to Vessels and equipment, net upon the delivery of; Flex Aurora, Flex Artemis, Flex Resolute and Flex Amber . In December 2020, the Company recognized deposits of $125.8 million in connection with the final payment due upon the delivery of our eleventh LNG carrier, Flex Freedom . In January 2021, $181.6 million was reclassified from Vessel purchase prepayments to Vessels and equipment, net upon the delivery of our eleventh LNG carrier, Flex Freedom . In January 2021, $54.0 million was reclassified from Vessel purchase prepayments to Vessels and equipment, net upon the delivery of our twelfth LNG carrier, Flex Volunteer. In May 2021, $54.0 million was reclassified from Vessel purchase prepayments to Vessels and equipment, net upon the delivery of our thirteenth LNG carrier, Flex Vigilant . |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment, Net | VESSELS AND EQUIPMENT, NET The table below summarizes the vessels and equipment, net applicable to the Company: (in thousands of $) Vessels and equipment Dry-docking Total Cost At December 31, 2019 1,178,415 15,000 1,193,415 Additions (121) — (121) Newbuildings 741,147 10,000 751,147 At December 31, 2020 1,919,441 25,000 1,944,441 Additions 180 — 180 Newbuildings 547,849 7,500 555,349 At December 31, 2021 2,467,470 32,500 2,499,970 Accumulated depreciation At December 31, 2019 (42,211) (3,930) (46,141) Charge (38,159) (3,680) (41,839) At December 31, 2020 (80,370) (7,610) (87,980) Charge (63,553) (6,272) (69,825) At December 31, 2021 (143,923) (13,882) (157,805) Net book value At December 31, 2019 1,136,204 11,070 1,147,274 At December 31, 2020 1,839,071 17,390 1,856,461 At December 31, 2021 2,323,547 18,618 2,342,165 The net book value of vessels that serve as collateral for the Company's long-term debt (Note 15) was $2,342.2 million as of December 31, 2021 (2020: $1,856.5 million). The net book value of the vessels Flex Rainbow , Flex Enterprise, Flex Endeavour, Flex Amber and Flex Volunteer |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | OTHER CURRENT ASSETS As of December 31, 2021 and 2020, other current assets within the Consolidated Balance Sheets is comprised of: (in thousands of $) 2021 2020 Trade accounts receivable, net 5,270 4,050 Accrued income 7,005 6,024 Prepaid expenses 2,487 11,344 Other receivables 2,278 3,643 Total other current assets 17,040 25,061 Trade accounts receivables are presented net of allowances for doubtful accounts amounting to $nil as of December 31, 2021 (2020: $nil). |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES As of December 31, 2021 and 2020, other current liabilities within the Consolidated Balance Sheets is comprised of: (in thousands of $) 2021 2020 Accrued expenses (12,607) (14,013) Deferred charter revenue (26,873) (25,341) Other current liabilities (2,901) (57) Provisions (606) (836) Total other current liabilities (42,987) (40,247) |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | RESTRICTED CASHThe Company has $0.5 million of restricted cash as of December 31, 2021 (2020: $0.1 million). This is restricted by law for the Norwegian tax authorities in relation to social security of employees. |
SHARE CAPITAL AND ADDITIONAL PA
SHARE CAPITAL AND ADDITIONAL PAID IN CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Share Capital and Additional Paid in Capital | SHARE CAPITAL AND ADDITIONAL PAID IN CAPITAL (in thousands of $, except share data) Shares outstanding Share Capital Treasury shares Additional paid in capital Ordinary shares - issued and fully paid: At December 31, 2019 54,110,584 5,411 — 1,190,049 Shares repurchased (202,797) — (1,661) — Share-based payments — — — 284 At December 31, 2020 53,907,787 5,411 (1,661) 1,190,333 Shares repurchased (777,203) — (7,788) — Share-based payments — — — (1,273) At December 31, 2021 53,130,584 5,411 (9,449) 1,189,060 On November 19, 2020, the Company's Board of Directors authorized a share buy-back program of up to an aggregate of 4,110,584 of the Company's ordinary shares for the purpose of increasing shareholder value. The maximum amount to be paid per share was $10.00, or equivalent in NOK if bought at the Oslo Stock Exchange. The Company was not obligated under the terms of the program to repurchase any of its ordinary shares. The program ended in November 2021. The Company had repurchased an aggregate of 980,000 ordinary shares, equivalent 1.8%, of the total issued ordinary shares. The shares are held as treasury shares, and have been purchased at a weighted average price of NOK 83.13, or $9.64 per share. In November 2021, 105,000 and 15,000 share options held by management, which vested in the period September 2018 to September 2021 (the "September 2018 tranche") and April 2020 to April 2021 (the "April 2020 tranche") respectively were exercised. The Company paid an aggregate amount of $1.3 million in settlement, recorded to additional paid in capital. |
SHARE BASED PAYMENTS
SHARE BASED PAYMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Payments | SHARE-BASED PAYMENTS On September 7, 2018, the Company's Board of Directors approved a Share Option Scheme. The Share Option Scheme permits the Board of Directors, at its discretion, to grant options to acquire shares in the Company to employees and directors of the Company or its subsidiaries. The exercise price for all options granted under the scheme is reduced by the amount of all dividends declared by the Company (the "Adjusted Exercise Price") in the period from the date of grant until the date the option is exercised, provided the Adjusted Exercise Price is never reduced below the par value of the share. The vesting periods of options granted under the Share Option Scheme will be specific to each grant. There is no maximum number of shares authorized for awards of equity share options and authorized, unissued or treasury shares of the Company may be used to satisfy exercised options. When a share option is exercised, the Board of Directors can use their right, according to the Bye-laws, to issue new shares or if the Company has treasury shares these can also be used. As of December 31, 2021, the Company had the following share options outstanding: Assumptions used (1) Grant date Share options Initial Exercise Price ($) Vesting date Risk-free interest rate Expected Volatility April 2020 Tranche Apr-20 15,000 7.60 Apr-22 0.39 % 48.8 % April 2020 Tranche Apr-20 15,000 10.20 Apr-23 0.39 % 48.8 % August 2021 Tranche Aug-21 146,250 14.00 Sep-22 0.82 % 4.8 % August 2021 Tranche Aug-21 204,750 15.60 Sep-23 0.82 % 4.8 % August 2021 Tranche Aug-21 234,000 17.20 Sep-24 0.82 % 4.8 % Total 615,000 (1) The fair value of the share options was calculated using these assumptions as of the grant date using the Black-Scholes option valuation model. The risk-free interest rate was estimated using the interest rate on five-year US treasury rate. The volatility was estimated using historical volatility of share price data. The dividend yield has been estimated at 0% as the exercise price is reduced by all dividends declared by the Company from the date of grant to the exercise date. It was assumed that all of the options granted in April 2020 and August 2021 Tranches will vest and therefore no forfeitures were assumed. The effect of forfeitures is recognized as incurred. The following table summarizes the unvested option activity for the year ended December 31, 2021, 2020 and 2019: Number of non-vested options Number of vested options Weighted average exercise price per share ($) Weighted average remaining contractual term (years) Weighted average grant date fair value ($) At December 31, 2019 (1) 94,000 47,000 14.90 3.6 15.00 Granted during the year (2) 45,000 — 7.63 5.0 7.63 Exercised during the year (2) — — — 0.0 — Forfeited during the year (2) — — — 0.0 — Expired during the year (2) — — — 0.0 — Vested during the year (47,000) 47,000 — 0.0 15.00 At December 31, 2020 (1) 92,000 94,000 11.61 3.0 13.17 Granted during the year (2) 585,000 — 15.84 4.8 15.84 Exercised during the year (2) — (120,000) (11.78) 0.0 (13.15) Forfeited during the year (2) (12,000) (24,000) (16.12) 0.0 (17.05) Expired during the year (2) — — — 0.0 — Vested during the year (50,000) 50,000 — 0.0 11.54 At December 31, 2021 (1) 615,000 — 14.31 4.8 15.50 (1) The weighted average exercise price has been adjusted by the amount of all dividends declared by the Company in the period, from the date of grant until the date the option is exercised. (2) Numbers, years and per share amounts are stated as of the grant, exercise, forfeiture or expired date. In November 2021, 105,000 and 15,000 share options held by management, under the September 2018 Tranche and the April 2020 Tranche, were exercised. The grant date exercise price of the September 2018 Tranche was $14.30 per share, which was adjusted to $12.90 due to $1.40 dividends paid per share since the options were granted. The grant date exercise price of the April 2020 Tranche was $5.10 per share, which was adjusted to $3.90 due to $1.20 dividends paid per share since the options were granted. The stock options were settled in cash being the difference of Adjusted Exercise Prices and the closing price at the NYSE on November 17, 2021 of $22.78. The Company paid an aggregate amount of $1.3 million in settlement, which was recorded to additional paid in capital. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Derivative instruments that economically hedge exposures are used for risk management purposes, but these instruments are not designated as hedges for accounting purposes. Credit risk is the failure of the counterparty to perform under the terms of the derivative instrument. When the fair value of a derivative instrument is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative instrument is negative, the Company owes the counterparty, and, therefore, the Company is not exposed to the counterparty's credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with major banking and financial institutions. The derivative instruments entered into by the Company do not contain credit risk-related contingent features. The Company has not entered into master netting agreements with the counterparties to its derivative financial instrument contracts. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates, currency exchange rates or commodity prices. The market risk associated with interest rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Company assesses interest rate risk by monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating economical hedging opportunities. As of December 31, 2021 the Company has a total of 17 interest rate swap transactions (2020: 18). This is to reduce the risk associated with fluctuations in interest rates, whereby LIBOR on an amortized notional principal of $677.8 million as per December 31, 2021 (2020: $759.1 million), has been swapped to a fixed rate. Our interest rate swap contracts as of December 31, 2021 are summarized as follows: (in thousands of $) Notional principal Inception date Maturity date Fixed Interest Rate Receiving floating, pay fixed 50,000 June 2019 June 2024 2.15 % Receiving floating, pay fixed 50,000 June 2019 June 2024 2.15 % Receiving floating, pay fixed 75,000 June 2020 June 2025 1.39 % Receiving floating, pay fixed 50,000 July 2020 July 2025 1.38 % Receiving floating, pay fixed 25,000 July 2020 July 2025 1.38 % Receiving floating, pay fixed 75,000 July 2020 July 2025 1.43 % Receiving floating, pay fixed 46,875 August 2020 August 2025 0.35 % Receiving floating, pay fixed 23,438 August 2020 August 2025 0.35 % Receiving floating, pay fixed 35,000 September 2020 September 2025 1.03 % Receiving floating, pay fixed 25,000 September 2020 September 2025 1.22 % Receiving floating, pay fixed 25,000 September 2020 September 2025 1.22 % Receiving floating, pay fixed 25,000 September 2020 September 2025 0.37 % Receiving floating, pay fixed 47,500 October 2020 October 2025 0.41 % Receiving floating, pay fixed 25,000 September 2019 June 2024 1.38 % Receiving floating, pay fixed 25,000 September 2019 June 2024 1.40 % Receiving floating, pay fixed 50,000 June 2021 November 2025 0.74 % Receiving floating, pay fixed 25,000 March 2021 June 2024 0.35 % |
SHORT-TERM AND LONG-TERM DEBT
SHORT-TERM AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short and long-term debt for the company as of December 31, 2021 and 2020, is detailed in the table below: (in thousands of $) 2021 2020 U.S. dollar denominated floating rate debt $250 Million Term Loan Facility 220,313 232,813 $50 million term loan under $100 Million Facility 44,080 46,711 Flex Rainbow Sale and Leaseback 131,906 139,781 $629 Million Term Loan Facility 613,512 513,200 Flex Amber Sale and Leaseback 147,712 156,400 Total U.S. dollar floating rate debt 1,157,523 1,088,905 U.S. dollar denominated fixed rate debt Hyundai Glovis Sale and Charterback 271,381 283,643 Flex Volunteer Sale and Leaseback 159,448 — Total U.S. dollar denominated fixed rate debt 430,829 283,643 U.S. dollar denominated revolving credit facilities $70 million revolving tranche under $100 Million Facility 64,080 46,711 Total U.S. dollar denominated revolving credit facilities 64,080 46,711 Total debt 1,652,432 1,419,259 Less Current portion of debt (85,879) (68,340) Long-term portion of debt issuance costs (14,606) (13,906) Long-term debt 1,551,947 1,337,013 Capital commitments relating to our long-term debt obligations as of December 31, 2021 as detailed in the table below: (in thousands of $) 2022 85,879 2023 86,965 2024 363,354 2025 329,314 2026 79,716 Thereafter 707,204 Total 1,652,432 Flex Rainbow Sale and Leaseback In July 2018, the Company, through its wholly-owned subsidiary, Flex LNG Rainbow Ltd., which owned the Flex Rainbow , entered into a sale leaseback transaction (the " Flex Rainbow Sale and Leaseback"), for the vessel with a Hong Kong-based lessor for a lease period of 10 years. The gross sales price under the lease was $210 million, of which $52.5 million represented advance hire for the 10 years lease period. The agreement includes fixed price purchase options, whereby we have the option to re-purchase the vessel at or after the second anniversary of the agreement, and on each anniversary thereafter, until the end of the lease period. The bareboat rate payable under the lease has a fixed element, treated as principal repayment, and a variable element based on LIBOR plus a margin of 3.50% per annum calculated on the outstanding under the lease. The facility includes a covenant that requires us to provide additional security, by way of a deposit, as necessary to maintain the fair market value of the vessel at not less than a specified percentage of the principal amount outstanding under the lease. As of December 31, 2021, the net outstanding balance under the lease was $131.1 million (2020: $138.8 million). $250 Million Term Loan Facility In April 2019, the Company, through two of its vessel owning subsidiaries, entered into a $250 million secured term loan facility (the "$250 Million Term Loan Facility") with a syndicate of banks for the part financing of Flex Constellation and Flex Courageous . The first $125 million tranche was drawn in June 2019 upon delivery of the Flex Constellation , and the remaining $125 million tranche was drawn in August 2019 upon delivery of the Flex Courageous . The facility has a term of five years from delivery of the last vessel, Flex Courageous , and bears interest at LIBOR plus a margin of 2.35% per annum. As of December 31, 2021, the net outstanding balance under the facility was $219.2 million (2020: $230.9 million). The facility includes various financial covenants, as described below. $100 Million Facility In July 2019, the Company, through one of its vessel owning subsidiaries, entered into a $100 million term loan and revolving credit facility (the "$100 Million Facility") with a syndicate of banks to refinance the vessel, Flex Ranger . The facility was divided into a $50 million term loan and a $50 million revolving credit facility. The full amount of $100 million was drawn on July 19, 2019, and the proceeds were used to prepay the outstanding balance of $99.8 million relating to the Flex Ranger under the existing $315 million secured term loan facility (the "$315 Million Term Loan Facility"). The facility has a term of five years and bears interest of LIBOR plus a margin of 2.25% per annum. The facility includes various financial covenants, as described below. In March 2021, the Company signed an addendum to the $100 Million Facility, whereby the revolving tranche under the facility was increased by $20 million. The $20 million increase is non-amortizing and bears interest at LIBOR plus a margin of 2.25% per annum for any drawn amounts. As of December 31, 2021, the net outstanding balance under the facility was $108.1 million (2020: $93.3 million). The revolving tranche under the facility was fully drawn. Hyundai Glovis Sale and Charterback In April 2019, the Company, through two of its vessel owning subsidiaries, entered into sale and time charter agreements with Hyundai Glovis Co. Ltd. ("Hyundai Glovis") for the vessels Flex Endeavour and Flex Enterprise (the "Hyundai Glovis Sale and Charterback"). The transactions were executed at the end of July 2019, whereby the vessels were sold for a gross consideration of $210 million per vessel, with a net consideration of $150 million per vessel adjusted for a non-amortizing and non-interest bearing seller's credit of $60 million per vessel. The vessels have been chartered back on a time-charter basis to the vessel owning subsidiaries for a period of ten years. The agreements include fixed price purchase options, whereby the Company will have annual options to acquire the vessels during the term of the time-charters with the first option exercisable on the third anniversary of closing of the transactions and the last option at expiry of the ten years charter periods. At the end of the ten years charter periods, Hyundai Glovis will have the right to sell the vessels back to the Company for a net consideration of $75 million per vessel, net of the $60 million seller's credit per vessel. As of December 31, 2021, the total net outstanding balance under the leases was $269.5 million (2020: $281.3 million). $629 Million Term Loan Facility In February 2020, the Company, through five of its vessel owning subsidiaries, entered into a facility agreement with a syndicate of banks and the Export-Import Bank of Korea ("KEXIM") for a $629 million financing for five newbuildings that were scheduled for delivery in 2020 (the "$629 Million Term Loan Facility"). The facility is divided into a commercial bank loan of $250 million (the "Commercial Loan"), a KEXIM guaranteed loan, funded by commercial banks, of $189.1 million (the "KEXIM Guaranteed Loan") and a KEXIM direct loan of $189.9 million (the "KEXIM Direct Loan"). The facility includes an accordion option of up to $10 million per vessel subject acceptable long-term employment, which was utilized to increase the Commercial Loan on the Flex Artemis by $10 million in July 2020. The Commercial Loan bears interest at LIBOR plus a margin of 2.35% per annum and has a final maturity date being the earlier of (i) five years from delivery of the final vessel or (ii) November 30, 2025. The KEXIM Guaranteed Loan bears interest at LIBOR plus a margin of 1.2% per annum and the KEXIM Direct Loan at LIBOR plus a margin of 2.25% per annum. The KEXIM Guaranteed Loan has a term of 6 years from delivery of each vessel and the KEXIM Direct Loan a term of 12 years from delivery of each vessel, provided however that these loans will mature at the same time as the Commercial Loan if the Commercial Loan has not been refinanced at terms acceptable to the lenders. The facility includes various financial covenants, as described below. In the year ended December 31, 2020, the Company drew down $125.8 million in connection with the delivery of our seventh vessel, Flex Aurora and $135.8 million in connection with the delivery of our eighth vessel, Flex Artemis . The Company utilized an option under the facility to replace the newbuilding Flex Amber with the sister vessel Flex Vigilant , delivered in the second quarter of 2021. Additionally, the Company drew down $125.8 million in connection with the delivery of the Company's ninth vessel, Flex Resolut e and $125.8 million in connection with the delivery of the Company's eleventh vessel, Flex Freedom , which was delivered January 1, 2021. In May 2021, the Company drew down $123.3 million under the $629 million Facility upon delivery of our thirteenth newbuilding LNG carrier, Flex Vigilant . As of December 31, 2021, the net outstanding balance under the facility was $602.1 million (2020: $502.8 million). Flex Amber sale and leaseback In June 2020, the Company, through one of its vessel owning subsidiaries, entered into a sale and leaseback transaction with an Asian based leasing house for the vessel, Flex Amber ( the " Flex Amber Sale and Leaseback"). Under the terms of the transaction, the vessel was sold for a gross consideration of $206.5 million, with a net consideration to the Company of $156.4 million, adjusted for an advance hire of $50.1 million. The vessel has been chartered back on a bareboat basis for a period of ten years. The agreement includes fixed price purchase options, whereby the Company has options to re-purchase the vessel at or after the first anniversary of the agreement, and on each anniversary thereafter. At the end of the ten As of December 31, 2021, the net outstanding balance under the lease was $146.0 million (2020: $154.4 million). $125 Million Facility In June 2020, the Company, through one of its vessel owning subsidiaries, entered into the $125 Million Facility for the financing of the vessel, Flex Volunteer , which was delivered in January 2021. The facility was divided into a $100 million term loan and a $25 million revolving credit facility. The facility bears interest at LIBOR plus a margin of 2.85% per annum and has a term of five years from delivery of the vessel. The facility included various financial covenants, as described below. In January 2021, the Company drew down $100 million under the term loan tranche of the $125 Million Facility upon delivery of our twelfth newbuilding LNG carrier, Flex Volunteer. As of December 31, 2021, the outstanding balance of $120.3 million under the $125 Million Facility agreement was prepaid in full following the execution of the Flex Volunteer Sale and Leaseback, as further described below. Flex Volunteer Sale and Leaseback In November 2021, the Company, through one of its vessel owning subsidiaries, entered into a sale and leaseback agreement with a Japanese based lessor for the vessel, Flex Volunteer (the " Flex Volunteer Sale and Leaseback"). The transaction was executed in December 2021, whereby the vessel was sold for a gross consideration of $215.0 million , with a net consideration to the Company of $160.0 million adjusted for a Charterers' down payment of $55.0 million. The agreement is treated as a financing arrangement for accounting purposes, whereby the net consideration received is considered the financed amount. The vessel has been chartered back on a bareboat charter basis for a period of 10 years with a fixed daily rate of hire rate, split as interest and principal repayments. At the end of the ten year bareboat charter period, the Company has the right to buy and the lessor has the right to sell the vessel for a consideration of $80.0 million. Upon closing of the transaction, a portion of the proceeds, $120.3 million, was used to prepay the outstanding balances under the $125 Million Facility, with the remaining balance of $37.7 million after fees and expenses, available for general corporate purposes. As of December 31, 2021, the net outstanding balance under the lease was $157.4 million. Loan covenants Certain of our financing agreements discussed above, have, amongst other things, the following financial covenants, as amended or waived, which are tested quarterly, the most stringent of which require us (on a consolidated basis) to maintain: • a book equity ratio of minimum 0.25 to 1.0; • a positive working capital; • minimum liquidity, including undrawn credit lines with a remaining term of at least six months, being the higher of: (i) $25 million; and (ii) an amount equal to five percent (5%) of our total interest bearing financial indebtedness net of any cash and cash equivalents; and • collateral maintenance test, ensuring that the aggregate value of the vessels making up the facility in question exceeds the aggregate value of the debt commitment outstanding. As of December 31, 2021, all financial covenants have been met accordingly. |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The principal financial assets of the Company at December 31, 2021 and 2020, consist primarily of cash and cash equivalents, restricted cash, other current assets, receivables due from related parties and derivative instruments receivable. The principal financial liabilities of the Company consist of payables due to related parties, accounts payable, other current liabilities, derivative instruments payable and long-term debt. The fair value measurements requirement applies to all assets and liabilities that are being measured and reported on a fair value basis. The assets and liabilities carried at fair value should be classified and disclosed in one of the following three categories based on the inputs used to determine its fair value: Level 1: Quoted market prices in active markets for identical assets or liabilities; Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data; Level 3: Unobservable inputs that are not corroborated by market data. The fair value of the Company's cash and cash equivalents and restricted cash approximates their carrying amounts reported in the accompanying consolidated balance sheets. The fair value of other current assets, receivables from related parties, payables due to related parties, accounts payable and other current liabilities approximate their carrying amounts reported in the accompanying consolidated balance sheets. The fair value of floating rate debt has been determined using Level 2 inputs and is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly or semi-annual basis. Carrying value of the floating rate debt is shown net deduction of debt issuance cost, while fair value of floating rate debt is shown gross. The fixed rate debt has been determined using Level 2 inputs being the discounted expected cash flows of the outstanding debt. The following table includes the estimated fair value and carrying value of those assets and liabilities. 2021 2021 2020 2020 (in thousands of $) Fair value hierarchy level Carrying value of asset (liability) Fair value Carrying value of asset (liability) Fair value asset Cash and cash equivalents Level 1 200,652 200,652 128,878 128,878 Restricted cash Level 1 518 518 84 84 Derivative instruments Level 2 5,862 5,862 109 109 Derivative instruments Level 2 (4,764) (4,764) (23,434) (23,434) Floating rate debt Level 2 (1,206,522) (1,221,603) (1,120,172) (1,135,616) Fixed rate debt Level 2 (426,897) (465,287) (281,307) (306,621) There have been no transfers between different levels in the fair value hierarchy during the year. Assets Measured at Fair Value on a Recurring Basis The fair value (Level 2) of interest rate swap derivative agreements is the present value of the estimated future cash flows that we would receive or pay to terminate the agreements at the balance sheet date, taking into account, as applicable, fixed interest rates on interest rate swaps, current interest rates, forward rate curves and the credit worthiness of both us and the derivative counterparty. Concentration of Risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that substantially all of the amounts are carried with Skandinaviska Enskilda Banken AB (S&P Global rating: A+), Nordea Bank AB (S&P Global rating: AA-), Danske Bank AS (S&P Global rating: A+) and DNB ASA (S&P Global rating: AA-). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Related Party Balances A summary of receivables due from related parties as of December 31, 2021 and 2020 is as follows: (in thousands of $) 2021 2020 Seatankers Management Norway AS 18 — Frontline Ltd 162 135 Frontline Management AS 1 — Northern Ocean Limited 47 31 228 166 A summary of payables due to related parties as of December 31, 2021 and 2020 is as follows: (in thousands of $) 2021 2020 Frontline Management (Bermuda) Limited (85) (29) Frontline Corporate Services Ltd (30) (13) Frontline Management AS — (33) Flex LNG Fleet Management AS (232) (234) SFL Corporation Ltd (1) (2) Golden Ocean Management AS — (1) (348) (312) Related Party Transactions A summary of income and (expenses) recorded from related parties for the years ended December 31, 2021, 2020, and 2019 are as follows: (in thousands of $) 2021 2020 2019 Seatankers Management Co. Ltd (144) (312) (548) Seatankers Management Norway AS (59) (81) (84) Frontline Management (Bermuda) Limited (288) (122) (711) Frontline Ltd (2) 17 — Frontline Management AS (184) (154) (336) Flex LNG Fleet Management AS (3,235) (1,795) (223) SFL Corporation Ltd — (2) — FS Maritime SARL (337) (225) — Northern Ocean Limited 7 — — Golden Ocean Management AS (1) — — Front Ocean Management AS (55) — — In the year ended December 31, 2021, the Company made payments to a related party of Geveran for LNG carriers amounting to $385.6 million (2020: $557.7 million (2019: $190.3 million)). For more information see Note 7: Vessel Purchase Prepayments and Note 8: Vessels and Equipment, Net. General Management Agreements In October 2021, the Company entered into a service level agreement with a Front Ocean Management AS as part of which they will provide certain advisory and support services including human resources, shared office costs, administrative support, IT systems and services, compliance, insurance and legal assistance. In the year ended December 31, 2021, we recorded an expense, within administrative expenses, of $0.1 million for these services. We have an administrative services agreement with Frontline Management AS ("Frontline Management") under which they provide us with certain administrative support, technical supervision, purchase of goods and services within the ordinary course of business and other support services, for which we pay our allocation of the actual costs they incur on our behalf, plus a margin. Frontline Management may subcontract these services to other associated companies, including Frontline Management (Bermuda) Limited. In the year ended December 31, 2021, we recorded an expense, within administrative expenses, of $0.5 million from Frontline Management and associated companies for these services (2020: $0.3 million (2019: $1.0 million)). We also have an agreement with Seatankers Management Co. Ltd. ("Seatankers") under which it provides us with certain advisory and support services, for which we pay our allocation of the actual costs they incur on our behalf, plus a margin. In the year ended December 31, 2021, we recorded an expense, within administrative expenses, of $0.1 million from Seatankers for these services (2020: $0.3 million (2019: $0.5 million)). Technical Management The Company has a ship management agreements with Flex LNG Fleet Management AS, a related party owned by Frontline Ltd., for which they are responsible for the technical ship management for all of our entire fleet. Under the agreements, Flex LNG Fleet Management AS is paid a fixed fee per vessel per annum, which is subject to an annual review. In the year ended December 31, 2021, we recorded an expense, within vessel operating expenses, of $3.2 million from Flex LNG Fleet Management AS for these services (2020: $1.8 million (2019: $0.2 million)). Consultancy Services The Company has a consultancy agreement with FS Maritime SARL for the employment of our Chief Commercial Officer. The fee is set at a maximum of CHF437,995 per annum and is charged on a pro-rated basis for the time allocation of consultancy services incurred. The contract was terminated in December 2021, and will expire in March 2022. In the year ended December 31, 2021, we recorded an expense, within administrative expenses, of $0.3 million from FS Maritime SARL for these services (2020: $0.2 million). |
MINIMUM COMMITTED REVENUE
MINIMUM COMMITTED REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Minimum Committed Revenue | MINIMUM COMMITTED REVENUECommitted time charter revenues for the Company as of December 31, 2021 are detailed in the table below. Subsequent events, after the balance sheet date but before the financial statements were issued, could affect the value of the revenue realized due to market linked contracts and the effect of newly signed contracts, changes or options, which have been excluded. For market linked contracts only the floor rate per the contracts has been used for the purposes of calculating committed revenue whereas the actual revenue realized will only be determined at the time of invoicing. The amounts below represent committed revenue rather than the actual value in cash due in the next year. Some of the hire relating to the committed revenue for January 2021 is invoiced in advance and is included in the accounts as deferred charter revenue. As of December 31, 2021, $5.3 million was unpaid and is included in trade accounts receivables. (in thousands of $) 2022 264,901 2023 234,265 2024 199,266 2025 75,105 2026 30,254 Thereafter 3,069 Total 806,860 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS $375 Million Facility In February 2022, the Company, through its vessel owning subsidiaries, received credit approved term sheets for a new $375 million term and revolving loan facility (the "$375 Million Facility") from a syndicate of banks to refinance existing facilities secured by Flex Endeavour , Flex Ranger and Flex Rainbow . The facility is comprised of a $125 million term loan facility with a six year repayment profile and a non-amortizing $250 million revolving credit facility, resulting in an average age-adjusted repayment profile of 22 years. The facility has an accordion option to add an additional $125 million by adding an additional vessel as nominated by the Company within 36 months from the closing date of the agreement. The facility has an interest rate of SOFR plus 210 basis points. Secured Overnight Funding Rate ("SOFR") is a benchmark interest rate for dollar-denominated derivatives and loans that is replacing LIBOR. The facility is subject to final documentation and customary closing conditions and is expected to be drawn between the second quarter of 2022 and the third quarter of 2022. $320 million Sale and Leaseback In February 2022, the Company, through its vessel owning subsidiaries, received credit approved term sheets from an Asian based lease provider for an aggregate of $320 million for two separate sale and bareboat leaseback agreements (the "$320 Million Sale and Leaseback") to refinance the existing facility secured by Flex Constellation and Flex Courageous . Under the terms of the two sale and leaseback agreements, the vessels will be sold for gross consideration equivalent to the market value of each vessel and net consideration to the Company of $160 million per vessel, adjusted for an advance hire per vessel. The term of each lease is ten years and the Company has options to repurchase the vessels after three years. At the expiry of the ten-year charter period the Company has the option to repurchase the vessels for $66.5 million per vessel reflecting an age adjusted repayment profile of 20 years. The agreement has an interest rate of SOFR plus 250 basis points. The agreement is subject to final documentation and customary closing conditions and is expected to be drawn in the second quarter of 2022. Interest rate swaps In connection with the above refinancings, the Company entered into three interest rate swap agreements, swapping a variable rate of interest based on SOFR to a fixed rate of interest on a notional aggregate principal of $200 million. The swaps have a term of ten years and a weighted average fixed interest rate of 1.70%. Dividend On February 16, 2022, the Company’s Board of Directors declared a cash dividend for the fourth quarter of 2021 of $0.75 per share. The dividend was paid on or around March 16, 2022, to shareholders on record as of March 2, 2022. The ex-dividend date was March 1, 2022. Uncertainties caused by the Russo-Ukrainian War The recent outbreak of war between Russia and the Ukraine has disrupted supply chains and caused instability in the global economy, while the United States and the European Union, among other countries, announced sanctions against Russia. The ongoing conflict could result in the imposition of further economic sanctions against Russia, and the Company’s business may be adversely impacted. Currently, the Company’s charter contracts have not been affected by the events in Russia and Ukraine. However, it is possible that in the future third parties with whom the Company has or will have charter contracts may be impacted by such events. While in general much uncertainty remains regarding the global impact of the conflict in Ukraine, it is possible that such tensions could adversely affect the Company’s business, financial condition, results of operation and cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis for Preparation | Basis for Preparation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. |
Reporting Currency and Presentation Currency | Reporting Currency and Presentation Currency The Company's presentation and reporting currency is USD. The Company's primary economic environment is the international shipping market in which revenues are primarily settled in USD. The Company's most significant assets and liabilities are also paid for and settled in USD. Our expenses, however, are in the currency invoiced by each supplier. Foreign currency transactions are translated into the functional currency at the exchange rate in effect at the date of the transaction. Monetary items are translated at the period end exchange rate, non-monetary items that are measured at historical cost are translated at the rate in effect on the original transaction date, and non-monetary items that are measured at fair value are translated at the exchange rate in effect at the time when the fair value was determined. Foreign exchange gains and losses resulting from the settlement of such cash transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. |
Basis of Consolidation | Basis of Consolidation The Company's consolidated financial statements comprise FLEX LNG and its directly wholly owned subsidiaries. Details on the Company's significant subsidiaries are provided in Note 4. Intra-group transactions and balances, including internal profits and unrealized gains and losses, have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, the following: fair value of derivative instruments; initial dry-dock cost; vessel impairment assessment; and the expected useful lives of our vessels. Actual results could differ from those estimates. |
Fair Value Measurements | Fair Value Measurements The inputs to the fair value calculations are based on observable market data when available, but where this is not achievable; a degree of judgment is required in establishing fair values. Changes in these assumptions could impact the reported fair value, as detailed in Note 16. |
Segment Reporting | Segment Reporting Our chief operating decision maker ("CODM") measures performance based on our overall return to shareholders based on consolidated net income. Although separate vessel financial information is available, the CODM internally evaluates the performance of the Company as a whole and not on the basis of separate business units or different types of charters. As a result, the Company has determined that it operates as one reportable segment. Since the Company's vessels regularly move between countries in international waters over many trade routes, it is neither practical nor meaningful to assign revenues or earnings from the transportation of international LNG by geographic area. |
Accounting for Revenue and Related Expenses | Accounting for Revenue and Related Expenses The Company employs all of its vessels on time charter contracts, which the Company has established to contain a lease since the vessel is a specified asset, the charterer has the right to direct the use of the vessel and there are no substantive substitution rights. Revenue from time charter contracts are recognized as operating leases under ASC 842 Leases . The Company receives a fixed or variable, indexed on market rates, charter hire per day of on-hire whereby revenue is recognized and recorded on an accrual basis over the term of the charter as service is provided, including option periods if reasonably certain to be exercised. If the Company receives a lump sum re-positioning fee or fixed ballast bonus, which is probable at the commencement of the lease, this is recognized as part of the lease payments over the course of the time charter on a straight-line basis at the commencement of the lease. If the Company receives a lump sum ballast bonus, which is not probable at the commencement of the lease, then this is recognized as a variable lease payment from the date that the change in facts and circumstances occur. The variable lease payment is therefore recognized on a straight line basis from the date that the re-delivery port is declared and probability of occurrence is determined, to the date of arrival at the re-delivery port. If there is an option under a charter party for the lessee to extend the charter, the Company will assess the likelihood of the charterer exercising the extension option at inception of the lease in order to determine the lease term. If the option period is not included in the initial lease term and the charterer declares such option, the Company will consider the declaration of an option as a lease modification. The Company will remeasure the total minimum lease payments from the date of declaration of the option, adjusted for any prepaid or accrued rent from the original contract, and recognize this on a straight line basis to the date of arrival at the re-delivery port. Under a time charter agreement, the Company is responsible for both the operation and maintenance of the vessel which would be considered to be a non-lease performance obligation. The Company has chosen to elect the practical expedient of ASC 842 to not separate the lease and non-lease components and instead combine these as a single performance obligation as the Company considers the lease component to be the predominant component of the contract, for which ASC 842 will be applied. |
Trade Accounts Receivables | Trade Accounts Receivables Trade receivables are presented net of allowance for doubtful balances. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. |
Lease | Lease The Company assesses whether a contract contains a lease at inception of the contract. The assessment involves the exercise of judgement about whether it depends on a specified asset, whether the Company obtains substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct the use of the asset. The Company does not separate lease components from non-lease components as lessee. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The standard provides practical expedients for an entity’s ongoing accounting. The Company has elected the short-term lease recognition exemption for leases that qualify, meaning that the Company does not recognize Right Of Use assets or lease liabilities for these leases where the Company is the lessee. |
Interest Expense | Interest Expense Interest expenses are expensed as incurred except for interest expenses that are capitalized for qualifying assets that require a period of time to get them ready for their intended use. Interest expenses are capitalized until the qualifying asset is ready for use. The Company does not capitalize amounts beyond the actual interest expense incurred in the period. If the Company's financing plans associate a specific borrowing with a qualifying asset, the Company uses the rate on that borrowing as the capitalization rate to be applied to that portion of the average accumulated expenditures for the asset that does not exceed the amount of that borrowing. If average accumulated expenditures for the asset exceed the amounts of specific new borrowings associated with the asset, the capitalization rate to be applied to such excess shall be a weighted average of the rates applicable to other borrowings of the Company. |
Income Taxes | Income Taxes Income taxes are provided for based upon the tax laws and rates in effect in the countries in which the Company's ocean-going LNG carriers' operations were conducted and income was earned. Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company's assets and liabilities using the applicable jurisdictional tax in effect at the year end. A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized (Note 6). Recognition of uncertain tax positions is dependent upon whether it is more-likely-than-not that a tax position taken or expected to be taken in a tax return will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. If a tax position meets the more-likely-than-not recognition threshold, it is measured to determine the amount of benefit to recognize in the financial statements based on U.S. GAAP guidance. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. |
Vessels, Impairment of Long-lived Assets, and Vessel Purchase Prepayments | Vessels Vessels are carried at historical cost less accumulated depreciation and impairment adjustments, if any. The depreciation on vessels is reviewed annually to ensure that the method and period used reflect the pattern in which the asset's future economic benefits are expected to be consumed. The gross carrying amount of the vessel is the purchase price, including duties/taxes, borrowing costs and any other direct costs attributable to bringing it to the location and condition necessary for the vessels intended use. Capitalization of costs will cease once the vessel is in the location and condition necessary for it to be able to operate in the manner consistent with its intended design. On delivery, the total acquisition costs of the vessel will be segregated to groups of components that have different expected useful lives. The different groups of components will be depreciated over their expected useful lives. Subsequent costs, such as repair and maintenance costs, are recognized in the income statement as incurred. Each vessel is required to be dry-docked every five years. The Company capitalizes costs associated with the dry-docking in accordance with ASC Topic 360 Property, Plant and Equipment and amortizes these costs on a straight-line basis over the period to the next expected dry-docking. Amortization of dry-docking costs is included in depreciation in the Income Statement. The Company has adopted the "built in overhaul" method for when a vessel is newly acquired, or constructed, whereby a proportion of the cost of the vessel is allocated to the components expected to be replaced at the next dry-docking based on the expected costs relating to the next dry-docking. Dry-docking costs are included within operating activities on the statement of cash flows. The cost of the vessel, less their estimated residual value, is depreciated on a straight-line basis over the asset's estimated useful economic life. The residual value for owned vessels is calculated by multiplying the lightweight tonnage of the vessel by the estimated scrap value per tonne. The cost of dry-dock is depreciated on a straight-line basis over the assets estimated useful life. The following useful lives have been used: Vessels: 35 years Dry-docking: 5 years Impairment of Long-lived Assets The carrying values of long-lived assets held and used by the Company are reviewed quarterly or whenever events or circumstances indicate that the carrying amount of an asset may no longer be recoverable. If such impairment indicators are present, the Company assesses The Company assesses recoverability of the carrying value of each asset or newbuilding on an individual basis by estimating the future net undiscounted cash flows expected to result from the asset, including eventual disposal. In developing estimates of future undiscounted cash flows, the Company must make assumptions about future performance, with significant assumptions being related to charter rates, ship operating expenses, utilization, dry-docking requirements, residual values and the estimated remaining useful lives of the vessels. These assumptions are based on historical trends as well as future expectations. If the future net undiscounted cash flows are less than the carrying value of the asset, or the current carrying value plus future newbuilding commitments, an impairment loss is recorded equal to the difference between the asset's carrying value and fair value. In addition, long-lived assets to be disposed of are reported at the lower of carrying amount and fair value less estimated costs to sell. Vessel Purchase Prepayments Vessel purchase prepayments relate to amounts advanced under vessel purchase agreements or deposited as part of a pre-positioning of payments due on vessels and equipment, net, where title of the vessel does not transfer to the Company until the date of delivery. |
Inventories | Inventories Inventories comprise principally of fuel and lubricating oils and are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents Cash includes cash in hand and in the Company's bank accounts. Cash equivalents are short-term liquid investments with original maturities of three months or less. Restricted Cash Restricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. The cash is restricted by law for the Norwegian tax authorities in relation to social security tax and personal income tax of employees in the Company's subsidiary, Flex LNG Management AS, and is settled every second month. |
Debt Issuance Costs | Debt Issuance Costs Direct incremental costs relating to obtaining a loan are deferred and amortized over the team of the loan using the effective interest rate method. Amortization of debt issuance costs is included under interest expense. The Company has recorded debt issuance costs as a direct reduction from the carrying amount of the related debt in the balance sheet. |
Derivative Instruments | Derivative Instruments Our derivative instruments relate to interest-rate swaps, which are considered to be an economic hedge. However, these have not been designated as hedges for accounting purposes. These transactions involve the conversion of floating rates into fixed rates over the life of the transactions without an exchange of underlying principal. The fair value of the interest rate swap contracts are recognized as assets or liabilities. Changes in the fair value of these derivatives are recorded in gain/(loss) on derivatives in our consolidated statement of operations. Cash outflows and inflows resulting from economic derivative contracts are presented as cash flows from operations in the consolidated statement of cash flows. |
Share-based Compensation | Share-based Compensation The Company accounts for share-based payments in accordance with ASC Topic 718 Compensation - Stock Compensation , under which the fair value of issued stock options is expensed over the period in which the options vest under the simplified method. Share-based compensation represents the cost of vested and non-vested shares and share options granted to employees and directors for their services, and are included in administrative expenses in the consolidated statements of operations. The fair value of share options grants is determined with reference to option pricing models, and depends on the terms of the granted options. The fair value is recognized as compensation expense over the requisite service period. |
Earnings Per Share | Earnings Per ShareBasic earnings per share ("EPS") are computed based on the income available to ordinary shareholders divided by the weighted average number of shares outstanding. Diluted EPS is computed by dividing the net income available to ordinary shareholders by the weighted average number of ordinary shares and dilutive ordinary share equivalents then outstanding. If in the period there is a loss, then any potential ordinary shares have been excluded from the calculation of diluted loss per share. |
Treasury Shares | Treasury Shares When the Company repurchases its share capital, the amount of the consideration paid is recognized as a deduction from equity and classified as treasury shares, pending future use. If the Company acquires and retains treasury shares, the consideration paid is directly recognized in equity. The weighted average treasury shares reduce the number of shares outstanding used in calculating earnings per share and they have a dilutive effect on the diluted earnings per share. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2020-04, “ Reference Rate Reform (Topic 848) ” (“ASU 2020-04”), which provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of the London Interbank Offered Rate ("LIBOR") as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. In addition, in January 2021, the FASB issued another ASU (ASU No. 2021-01) with respect to the Reference Rate Reform (Topic 848) . The amendments in this Update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU 2020-4 was effective for the Company beginning on March 12, 2020 and the Company will apply the amendments prospectively through December 31, 2022. As of December 31, 2021, the Company has not made any contract modification to replace the reference rate in any of its agreements and had evaluated that there was no impact to its consolidated financial statements. The Company has reviewed all other recent issued accounting pronouncements and has not identified other standards that would have a material impact on the Company's current accounting policies. |
SIGNIFICANT SUBSIDIARIES (Table
SIGNIFICANT SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Significant Subsidiaries | As of December 31, 2021, the Company had the following significant subsidiaries: Company Country of registration Main operations Ownership share Voting share Flex LNG Chartering Limited United Kingdom Chartering services 100% 100% Flex LNG Management AS Norway Management services 100% 100% Flex LNG Bermuda Management Limited Bermuda Management services 100% 100% Flex LNG Management Limited Isle of Man Management services 100% 100% Flex LNG Fleet Limited Bermuda Holding company 100% 100% Flex LNG Endeavour Limited Marshall Islands Shipping 100% 100% Flex LNG Enterprise Limited Marshall Islands Shipping 100% 100% Flex LNG Ranger Limited Marshall Islands Shipping 100% 100% Flex LNG Rainbow Limited Marshall Islands Shipping 100% 100% Flex LNG Constellation Limited Marshall Islands Shipping 100% 100% Flex LNG Courageous Limited Marshall Islands Shipping 100% 100% Flex LNG Aurora Limited Marshall Islands Shipping 100% 100% Flex LNG Amber Limited Marshall Islands Shipping 100% 100% Flex LNG Resolute Limited Marshall Islands Shipping 100% 100% Flex LNG Reliance Limited Marshall Islands Shipping 100% 100% Flex Freedom Limited Marshall Islands Shipping 100% 100% Flex Vigilant Limited Marshall Islands Shipping 100% 100% Flex Volunteer Limited Marshall Islands Shipping 100% 100% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following reflects the net income and share data used in the earnings per share calculation. (in thousands of $, except share data) 2021 2020 2019 Net income 162,205 8,105 16,967 Weighted average number of ordinary shares 53,319,408 54,099,504 54,106,171 Share options 20,884 174,689 141,000 Weighted average number of shares, adjusted for dilution 53,340,292 54,274,193 54,247,171 Earnings per share - Basic and diluted 3.04 0.15 0.31 Dividends declared per share 1.85 0.20 0.10 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The table below shows the components of income tax year ended December 31, 2021, 2020 and 2019: (in thousands of $) 2021 2020 2019 Current income tax expense (71) (89) (118) Adjustments in respect of current income tax of previous years (28) 5 (64) Income tax expense reported in the income statement (99) (84) (182) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation between the tax expense and the product of the accounting profit multiplied by the Bermuda domestic tax rate for the year ended December 31, 2021, 2020 and 2019 is as follows: (in thousands of $) 2021 2020 2019 Income before tax 162,304 8,189 17,149 Income tax at 0% (2020: 0% (2019: 0%)) — — — Effect of higher foreign tax rates (99) (84) (182) Income tax expense at effective rate of 0.1% (2020: 1.0% (2019: 1.1%)) (99) (84) (182) |
VESSEL PURCHASE PREPAYMENTS (Ta
VESSEL PURCHASE PREPAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Equipment Prepayment Activity | (in thousands of $) 2021 2020 At January 1 289,600 349,472 Deposits to vessel purchase prepayments — 125,800 Transfers to vessels and equipment, net (289,600) (185,672) At December 31 — 289,600 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment, Net | The table below summarizes the vessels and equipment, net applicable to the Company: (in thousands of $) Vessels and equipment Dry-docking Total Cost At December 31, 2019 1,178,415 15,000 1,193,415 Additions (121) — (121) Newbuildings 741,147 10,000 751,147 At December 31, 2020 1,919,441 25,000 1,944,441 Additions 180 — 180 Newbuildings 547,849 7,500 555,349 At December 31, 2021 2,467,470 32,500 2,499,970 Accumulated depreciation At December 31, 2019 (42,211) (3,930) (46,141) Charge (38,159) (3,680) (41,839) At December 31, 2020 (80,370) (7,610) (87,980) Charge (63,553) (6,272) (69,825) At December 31, 2021 (143,923) (13,882) (157,805) Net book value At December 31, 2019 1,136,204 11,070 1,147,274 At December 31, 2020 1,839,071 17,390 1,856,461 At December 31, 2021 2,323,547 18,618 2,342,165 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | As of December 31, 2021 and 2020, other current assets within the Consolidated Balance Sheets is comprised of: (in thousands of $) 2021 2020 Trade accounts receivable, net 5,270 4,050 Accrued income 7,005 6,024 Prepaid expenses 2,487 11,344 Other receivables 2,278 3,643 Total other current assets 17,040 25,061 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | As of December 31, 2021 and 2020, other current liabilities within the Consolidated Balance Sheets is comprised of: (in thousands of $) 2021 2020 Accrued expenses (12,607) (14,013) Deferred charter revenue (26,873) (25,341) Other current liabilities (2,901) (57) Provisions (606) (836) Total other current liabilities (42,987) (40,247) |
SHARE CAPITAL AND ADDITIONAL _2
SHARE CAPITAL AND ADDITIONAL PAID IN CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | (in thousands of $, except share data) Shares outstanding Share Capital Treasury shares Additional paid in capital Ordinary shares - issued and fully paid: At December 31, 2019 54,110,584 5,411 — 1,190,049 Shares repurchased (202,797) — (1,661) — Share-based payments — — — 284 At December 31, 2020 53,907,787 5,411 (1,661) 1,190,333 Shares repurchased (777,203) — (7,788) — Share-based payments — — — (1,273) At December 31, 2021 53,130,584 5,411 (9,449) 1,189,060 |
SHARE BASED PAYMENTS (Tables)
SHARE BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Unvested Options, Activity | As of December 31, 2021, the Company had the following share options outstanding: Assumptions used (1) Grant date Share options Initial Exercise Price ($) Vesting date Risk-free interest rate Expected Volatility April 2020 Tranche Apr-20 15,000 7.60 Apr-22 0.39 % 48.8 % April 2020 Tranche Apr-20 15,000 10.20 Apr-23 0.39 % 48.8 % August 2021 Tranche Aug-21 146,250 14.00 Sep-22 0.82 % 4.8 % August 2021 Tranche Aug-21 204,750 15.60 Sep-23 0.82 % 4.8 % August 2021 Tranche Aug-21 234,000 17.20 Sep-24 0.82 % 4.8 % Total 615,000 The following table summarizes the unvested option activity for the year ended December 31, 2021, 2020 and 2019: Number of non-vested options Number of vested options Weighted average exercise price per share ($) Weighted average remaining contractual term (years) Weighted average grant date fair value ($) At December 31, 2019 (1) 94,000 47,000 14.90 3.6 15.00 Granted during the year (2) 45,000 — 7.63 5.0 7.63 Exercised during the year (2) — — — 0.0 — Forfeited during the year (2) — — — 0.0 — Expired during the year (2) — — — 0.0 — Vested during the year (47,000) 47,000 — 0.0 15.00 At December 31, 2020 (1) 92,000 94,000 11.61 3.0 13.17 Granted during the year (2) 585,000 — 15.84 4.8 15.84 Exercised during the year (2) — (120,000) (11.78) 0.0 (13.15) Forfeited during the year (2) (12,000) (24,000) (16.12) 0.0 (17.05) Expired during the year (2) — — — 0.0 — Vested during the year (50,000) 50,000 — 0.0 11.54 At December 31, 2021 (1) 615,000 — 14.31 4.8 15.50 (1) The weighted average exercise price has been adjusted by the amount of all dividends declared by the Company in the period, from the date of grant until the date the option is exercised. (2) Numbers, years and per share amounts are stated as of the grant, exercise, forfeiture or expired date. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Our interest rate swap contracts as of December 31, 2021 are summarized as follows: (in thousands of $) Notional principal Inception date Maturity date Fixed Interest Rate Receiving floating, pay fixed 50,000 June 2019 June 2024 2.15 % Receiving floating, pay fixed 50,000 June 2019 June 2024 2.15 % Receiving floating, pay fixed 75,000 June 2020 June 2025 1.39 % Receiving floating, pay fixed 50,000 July 2020 July 2025 1.38 % Receiving floating, pay fixed 25,000 July 2020 July 2025 1.38 % Receiving floating, pay fixed 75,000 July 2020 July 2025 1.43 % Receiving floating, pay fixed 46,875 August 2020 August 2025 0.35 % Receiving floating, pay fixed 23,438 August 2020 August 2025 0.35 % Receiving floating, pay fixed 35,000 September 2020 September 2025 1.03 % Receiving floating, pay fixed 25,000 September 2020 September 2025 1.22 % Receiving floating, pay fixed 25,000 September 2020 September 2025 1.22 % Receiving floating, pay fixed 25,000 September 2020 September 2025 0.37 % Receiving floating, pay fixed 47,500 October 2020 October 2025 0.41 % Receiving floating, pay fixed 25,000 September 2019 June 2024 1.38 % Receiving floating, pay fixed 25,000 September 2019 June 2024 1.40 % Receiving floating, pay fixed 50,000 June 2021 November 2025 0.74 % Receiving floating, pay fixed 25,000 March 2021 June 2024 0.35 % |
SHORT-TERM AND LONG-TERM DEBT (
SHORT-TERM AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Short and long-term debt for the company as of December 31, 2021 and 2020, is detailed in the table below: (in thousands of $) 2021 2020 U.S. dollar denominated floating rate debt $250 Million Term Loan Facility 220,313 232,813 $50 million term loan under $100 Million Facility 44,080 46,711 Flex Rainbow Sale and Leaseback 131,906 139,781 $629 Million Term Loan Facility 613,512 513,200 Flex Amber Sale and Leaseback 147,712 156,400 Total U.S. dollar floating rate debt 1,157,523 1,088,905 U.S. dollar denominated fixed rate debt Hyundai Glovis Sale and Charterback 271,381 283,643 Flex Volunteer Sale and Leaseback 159,448 — Total U.S. dollar denominated fixed rate debt 430,829 283,643 U.S. dollar denominated revolving credit facilities $70 million revolving tranche under $100 Million Facility 64,080 46,711 Total U.S. dollar denominated revolving credit facilities 64,080 46,711 Total debt 1,652,432 1,419,259 Less Current portion of debt (85,879) (68,340) Long-term portion of debt issuance costs (14,606) (13,906) Long-term debt 1,551,947 1,337,013 |
Schedule of Capital Commitments | Capital commitments relating to our long-term debt obligations as of December 31, 2021 as detailed in the table below: (in thousands of $) 2022 85,879 2023 86,965 2024 363,354 2025 329,314 2026 79,716 Thereafter 707,204 Total 1,652,432 |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value and Carrying Value of Assets and Liabilities | The following table includes the estimated fair value and carrying value of those assets and liabilities. 2021 2021 2020 2020 (in thousands of $) Fair value hierarchy level Carrying value of asset (liability) Fair value Carrying value of asset (liability) Fair value asset Cash and cash equivalents Level 1 200,652 200,652 128,878 128,878 Restricted cash Level 1 518 518 84 84 Derivative instruments Level 2 5,862 5,862 109 109 Derivative instruments Level 2 (4,764) (4,764) (23,434) (23,434) Floating rate debt Level 2 (1,206,522) (1,221,603) (1,120,172) (1,135,616) Fixed rate debt Level 2 (426,897) (465,287) (281,307) (306,621) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | A summary of receivables due from related parties as of December 31, 2021 and 2020 is as follows: (in thousands of $) 2021 2020 Seatankers Management Norway AS 18 — Frontline Ltd 162 135 Frontline Management AS 1 — Northern Ocean Limited 47 31 228 166 A summary of payables due to related parties as of December 31, 2021 and 2020 is as follows: (in thousands of $) 2021 2020 Frontline Management (Bermuda) Limited (85) (29) Frontline Corporate Services Ltd (30) (13) Frontline Management AS — (33) Flex LNG Fleet Management AS (232) (234) SFL Corporation Ltd (1) (2) Golden Ocean Management AS — (1) (348) (312) A summary of income and (expenses) recorded from related parties for the years ended December 31, 2021, 2020, and 2019 are as follows: (in thousands of $) 2021 2020 2019 Seatankers Management Co. Ltd (144) (312) (548) Seatankers Management Norway AS (59) (81) (84) Frontline Management (Bermuda) Limited (288) (122) (711) Frontline Ltd (2) 17 — Frontline Management AS (184) (154) (336) Flex LNG Fleet Management AS (3,235) (1,795) (223) SFL Corporation Ltd — (2) — FS Maritime SARL (337) (225) — Northern Ocean Limited 7 — — Golden Ocean Management AS (1) — — Front Ocean Management AS (55) — — |
MINIMUM COMMITTED REVENUE (Tabl
MINIMUM COMMITTED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Committed Time Charter Revenues | The amounts below represent committed revenue rather than the actual value in cash due in the next year. Some of the hire relating to the committed revenue for January 2021 is invoiced in advance and is included in the accounts as deferred charter revenue. As of December 31, 2021, $5.3 million was unpaid and is included in trade accounts receivables. (in thousands of $) 2022 264,901 2023 234,265 2024 199,266 2025 75,105 2026 30,254 Thereafter 3,069 Total 806,860 |
GENERAL (Details)
GENERAL (Details) | 12 Months Ended | ||||
Dec. 31, 2021stoke_enginecarrier | Dec. 31, 2021carrierm_type | Dec. 31, 2021xd_fcarrier | Dec. 31, 2021carriermegi_frs | Dec. 31, 2021megi_prscarrier | |
Accounting Policies [Abstract] | |||||
Number of carriers in operation | 13 | 13 | 13 | 13 | 13 |
Number of vessels | 2 | 9 | 4 | 3 | 4 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 12 Months Ended | |
Dec. 31, 2021customersegment | Dec. 31, 2020customer | |
Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 1 | |
Revenue, Major Customer [Line Items] | ||
Number of customers | 15 | 15 |
Number of top customers | 4 | 3 |
Revenue Benchmark | Top Customers | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Customer revenue as a percentage of total revenue (percent) | 66.10% | 69.10% |
Revenue Benchmark | Customer one | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Customer revenue as a percentage of total revenue (percent) | 20.80% | 28.60% |
Revenue Benchmark | Customer two | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Customer revenue as a percentage of total revenue (percent) | 16.60% | 28.60% |
Revenue Benchmark | Customer three | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Customer revenue as a percentage of total revenue (percent) | 15.30% | 11.90% |
Revenue Benchmark | Customer four | Customer Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Customer revenue as a percentage of total revenue (percent) | 13.40% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vessels (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |
Dry-dock requirement | 5 years |
Vessels | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 35 years |
Dry-docking | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
SIGNIFICANT SUBSIDIARIES - Sche
SIGNIFICANT SUBSIDIARIES - Schedule of Subsidiaries (Details) | Dec. 31, 2021 |
Flex LNG Chartering Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Management AS | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Bermuda Management Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Management Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Fleet Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Endeavour Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Enterprise Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Ranger Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Rainbow Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Constellation Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Courageous Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Aurora Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Amber Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Resolute Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex LNG Reliance Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex Freedom Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex Vigilant Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
Flex Volunteer Limited | |
Subsidiary or Equity Method Investee [Line Items] | |
Ownership share | 100.00% |
Voting share | 100.00% |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net income | $ 162,205 | $ 8,105 | $ 16,967 |
Weighted average number of ordinary shares (in shares) | 53,319,408 | 54,099,504 | 54,106,171 |
Share options (in shares) | 20,884 | 174,689 | 141,000 |
Weighted average number of shares, adjusted for dilution (in shares) | 53,340,292 | 54,274,193 | 54,247,171 |
Basic earnings per share (in dollars per share) | $ 3.04 | $ 0.15 | $ 0.31 |
Diluted earnings per share (in dollars per share) | 3.04 | 0.15 | 0.31 |
Dividends declared (in dollars per share) | $ 1.85 | $ 0.20 | $ 0.10 |
INCOME TAX - Narrative (Details
INCOME TAX - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Transportation revenue (in percent) | 50.00% | ||
IRS | |||
Operating Loss Carryforwards [Line Items] | |||
Revenue tax | $ 0 | $ 0 | $ 0 |
INCOME TAX - Schedule of Compon
INCOME TAX - Schedule of Components of Income Tax Credit (Expense) Reported in Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income tax expense | $ (71) | $ (89) | $ (118) |
Adjustments in respect of current income tax of previous years | (28) | 5 | (64) |
Income tax expense reported in the income statement | $ (99) | $ (84) | $ (182) |
INCOME TAX - Effective Income T
INCOME TAX - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax rate (percent) | 0.00% | 0.00% | 0.00% |
Effective income tax rate (percent) | 0.10% | 1.00% | 1.10% |
Income before tax | $ 162,304 | $ 8,189 | $ 17,149 |
Income tax at 0% (2020: 0% (2019: 0%)) | 0 | 0 | 0 |
Effect of higher foreign tax rates | (99) | (84) | (182) |
Income tax expense reported in the income statement | $ (99) | $ (84) | $ (182) |
VESSEL PURCHASE PREPAYMENTS - S
VESSEL PURCHASE PREPAYMENTS - Schedule of Equipment Prepayment Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equipment Prepayment [Roll Forward] | ||
At January 1 | $ 289,600 | $ 349,472 |
Deposits to vessel purchase prepayments | 0 | 125,800 |
Transfers to vessels and equipment, net | (289,600) | (185,672) |
At December 31 | $ 0 | $ 289,600 |
VESSEL PURCHASE PREPAYMENTS - N
VESSEL PURCHASE PREPAYMENTS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||
May 31, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||||
Transfer to vessels and equipment | $ 289,600 | $ 185,672 | ||||
Deposits to vessel purchase prepayments | $ 0 | $ 125,800 | ||||
Flex Aurora, Flex Artemis, Flex Resolute and Flex Amber | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Transfer to vessels and equipment | $ (185,700) | |||||
Vessels and equipment | Flex Freedom | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Transfer to vessels and equipment | $ 181,600 | |||||
Deposits to vessel purchase prepayments | $ 125,800 | |||||
Vessels and equipment | Flex Volunteer | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Transfer to vessels and equipment | $ 54,000 | |||||
Vessels and equipment | Flex Vigilant | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Transfer to vessels and equipment | $ 54,000 |
VESSELS AND EQUIPMENT, NET - Sc
VESSELS AND EQUIPMENT, NET - Schedule of Vessels and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Property, Plant and Equipment [Roll Forward] | |||
Additions | $ 180 | ||
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Charge | (69,833) | $ (41,846) | $ (28,747) |
Vessels and equipment, net book value | 2,342,165 | 1,856,461 | |
Vessels and equipment | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Beginning balance, cost | 1,944,441 | 1,193,415 | |
Additions | (121) | ||
Newbuildings | 555,349 | 751,147 | |
Ending balance, cost | 2,499,970 | 1,944,441 | 1,193,415 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | (87,980) | (46,141) | |
Charge | (69,825) | (41,839) | |
Ending balance | (157,805) | (87,980) | (46,141) |
Vessels and equipment, net book value | 2,342,165 | 1,856,461 | 1,147,274 |
Vessels and equipment | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Beginning balance, cost | 1,919,441 | 1,178,415 | |
Additions | 180 | (121) | |
Newbuildings | 547,849 | 741,147 | |
Ending balance, cost | 2,467,470 | 1,919,441 | 1,178,415 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | (80,370) | (42,211) | |
Charge | (63,553) | (38,159) | |
Ending balance | (143,923) | (80,370) | (42,211) |
Vessels and equipment, net book value | 2,323,547 | 1,839,071 | 1,136,204 |
Dry-docking | |||
Movement in Property, Plant and Equipment [Roll Forward] | |||
Beginning balance, cost | 25,000 | 15,000 | |
Additions | 0 | 0 | |
Newbuildings | 7,500 | 10,000 | |
Ending balance, cost | 32,500 | 25,000 | 15,000 |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||
Beginning balance | (7,610) | (3,930) | |
Charge | (6,272) | (3,680) | |
Ending balance | (13,882) | (7,610) | (3,930) |
Vessels and equipment, net book value | $ 18,618 | $ 17,390 | $ 11,070 |
VESSELS AND EQUIPMENT, NET - Na
VESSELS AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | |||
Vessels and equipment, net | $ 2,342,165 | $ 1,856,461 | |
Vessels and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Vessels and equipment, net | 2,323,547 | 1,839,071 | $ 1,136,204 |
Collateral Pledged | |||
Property, Plant and Equipment [Line Items] | |||
Vessels and equipment, net | 2,342,200 | $ 1,856,500 | |
Flex Rainbow, Flex Enterprise, And Flex Endeavour | Vessels and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Vessels and equipment, net | $ 903,200 |
OTHER CURRENT ASSETS - Schedule
OTHER CURRENT ASSETS - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Trade accounts receivable, net | $ 5,270 | $ 4,050 |
Accrued income | 7,005 | 6,024 |
Prepaid expenses | 2,487 | 11,344 |
Other receivables | 2,278 | 3,643 |
Total other current assets | $ 17,040 | $ 25,061 |
OTHER CURRENT ASSETS - Narrativ
OTHER CURRENT ASSETS - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
OTHER CURRENT LIABILITIES - Rec
OTHER CURRENT LIABILITIES - Reconciliation of other current liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ (12,607) | $ (14,013) |
Deferred charter revenue | (26,873) | (25,341) |
Other current liabilities | (2,901) | (57) |
Provisions | (606) | (836) |
Total other current liabilities | $ (42,987) | $ (40,247) |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 518 | $ 84 |
SHARE CAPITAL AND ADDITIONAL _3
SHARE CAPITAL AND ADDITIONAL PAID IN CAPITAL - Schedule of Shares Issued (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 54,110,584 | ||
Balance at beginning of year | $ 835,175 | $ 839,265 | |
Ending balance (in shares) | 54,110,584 | 54,110,584 | |
Balance at end of year | $ 889,387 | $ 835,175 | $ 839,265 |
Share capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 53,907,787 | 54,110,584 | |
Balance at beginning of year | $ 5,411 | $ 5,411 | $ 5,410 |
Shares repurchased (in shares) | (777,203) | (202,797) | 0 |
Ending balance (in shares) | 53,130,584 | 53,907,787 | 54,110,584 |
Balance at end of year | $ 5,411 | $ 5,411 | $ 5,411 |
Treasury shares | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | (1,661) | 0 | 0 |
Shares repurchased | (7,788) | (1,661) | 0 |
Balance at end of year | (9,449) | (1,661) | 0 |
Additional paid in capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Balance at beginning of year | 1,190,333 | 1,190,049 | 1,189,665 |
Shares repurchased | 0 | 0 | |
Share-based payments | (1,273) | 284 | 259 |
Balance at end of year | $ 1,189,060 | $ 1,190,333 | $ 1,190,049 |
SHARE CAPITAL AND ADDITIONAL _4
SHARE CAPITAL AND ADDITIONAL PAID IN CAPITAL - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Nov. 30, 2021$ / sharesshares | Nov. 30, 2021kr / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 19, 2020$ / sharesshares | |
Class of Stock [Line Items] | ||||||
Additional paid in capital | $ | $ 1,189,060 | $ 1,190,333 | ||||
Additional paid in capital | ||||||
Class of Stock [Line Items] | ||||||
Share-based payments | $ | $ (1,273) | $ 284 | $ 259 | |||
Share buy-back program | ||||||
Class of Stock [Line Items] | ||||||
Number of shares authorized to be repurchased | shares | 4,110,584 | |||||
Purchase price per share (in dollars per share) | $ / shares | $ 10 | |||||
Treasury shares (in shares) | shares | 980,000 | 980,000 | ||||
Proportion of shares in aggregate (in percent) | 1.80% | 1.80% | ||||
Treasury stock (in NOK and USD per share) | (per share) | $ 9.64 | kr 83.13 |
SHARE BASED PAYMENTS - Summary
SHARE BASED PAYMENTS - Summary of Shares Outstanding (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share options | 615,000 |
7.6 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share options | 15,000 |
Initial Exercise Price ($) | $ / shares | $ 7.60 |
Risk-free interest rate | 0.39% |
Expected Volatility | 48.80% |
10.2 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share options | 15,000 |
Initial Exercise Price ($) | $ / shares | $ 10.20 |
Risk-free interest rate | 0.39% |
Expected Volatility | 48.80% |
14 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share options | 146,250 |
Initial Exercise Price ($) | $ / shares | $ 14 |
Risk-free interest rate | 0.82% |
Expected Volatility | 4.80% |
15.6 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share options | 204,750 |
Initial Exercise Price ($) | $ / shares | $ 15.60 |
Risk-free interest rate | 0.82% |
Expected Volatility | 4.80% |
17.2 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share options | 234,000 |
Initial Exercise Price ($) | $ / shares | $ 17.20 |
Risk-free interest rate | 0.82% |
Expected Volatility | 4.80% |
SHARE BASED PAYMENTS - Narrativ
SHARE BASED PAYMENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 17, 2021 | Apr. 02, 2020 | Sep. 07, 2018 | Nov. 30, 2021 | Apr. 30, 2020 | Nov. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected dividend yield (percentage) | 0.00% | ||||||||
Options granted, weighted average grant date fair value (in dollars per share) | $ 15.84 | $ 7.63 | |||||||
Dividends declared (in dollars per share) | 1.85 | 0.20 | $ 0.10 | ||||||
Granted during the year (in dollars per share) | $ 22.78 | $ 15.84 | $ 7.63 | ||||||
Compensation expense not yet recognized | $ 600 | $ 200 | $ 700 | ||||||
Additional paid in capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based payments | (1,273) | 284 | 259 | ||||||
September 2018 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options exercised (in shares) | 105,000 | ||||||||
Options granted, weighted average grant date fair value (in dollars per share) | $ 14.30 | ||||||||
Options granted, weighted average grant date fair value, adjusted (in dollars per share) | $ 12.90 | ||||||||
Dividends declared (in dollars per share) | $ 1.40 | ||||||||
April 2020 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options exercised (in shares) | 15,000 | ||||||||
Options granted, weighted average grant date fair value (in dollars per share) | $ 5.10 | ||||||||
Options granted, weighted average grant date fair value, adjusted (in dollars per share) | $ 3.90 | ||||||||
Dividends declared (in dollars per share) | $ 1.20 | ||||||||
Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock compensation expense | $ 0 | $ 300 | $ 200 |
SHARE BASED PAYMENTS - Unvested
SHARE BASED PAYMENTS - Unvested Option Activity (Details) - $ / shares | Nov. 17, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 |
Number of non-vested options | ||||||
Number of non-vested options, beginning of period (in shares) | 92,000 | 94,000 | ||||
Granted during the year (in shares) | 585,000 | 45,000 | ||||
Converted during the year (in shares) | 0 | 0 | ||||
Forfeited during the year (in shares) | (12,000) | 0 | ||||
Expired during the year (in shares) | 0 | 0 | ||||
Number of vested options (in shares) | (50,000) | (47,000) | ||||
Number of non-vested options, end of period (in shares) | 92,000 | 94,000 | 92,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Number of vested options, beginning of period (in shares) | 94,000 | 47,000 | ||||
Number of vested options, exercised during the year (in shares) | (120,000) | |||||
Number of vested options, forfeited during the year (in shares) | (24,000) | |||||
Number of vested options (in shares) | 50,000 | 47,000 | ||||
Number of vested options, ending of period (in shares) | 94,000 | 47,000 | 0 | 94,000 | ||
Weighted average exercise price per share ($) | ||||||
Number of non-vested options (in dollars per share) | $ 11.61 | $ 14.90 | $ 14.31 | $ 11.61 | ||
Granted during the year (in dollars per share) | $ 22.78 | 15.84 | 7.63 | |||
Converted during the year (in dollars per share) | (11.78) | 0 | ||||
Forfeited during the year (in dollars per share) | (16.12) | 0 | ||||
Expired during the year (in dollars per share) | 0 | 0 | ||||
Vested during the year (in dollars per share) | $ 0 | $ 0 | ||||
Weighted average remaining contractual term (years) | ||||||
Weighted average remaining contractual term | 4 years 9 months 18 days | 3 years | 3 years 7 months 6 days | |||
Weighted average remaining contractual term for options granted during period | 4 years 9 months 18 days | 5 years | ||||
Weighted average grant date fair value ($) | ||||||
Weighted average grant date fair value (in dollars per share) | $ 13.17 | $ 15 | $ 15.50 | $ 13.17 | ||
Weighted average grant date fair value, options granted in period (in dollars per share) | 15.84 | 7.63 | ||||
Weighted average grant date fair value, options converted in period (in dollars per share) | (13.15) | 0 | ||||
Weighted average grant date fair value, options forfeited in period (in dollars per share) | (17.05) | 0 | ||||
Weighted average grant date fair value, options expired in period (in dollars per share) | 0 | 0 | ||||
Weighted average grant date fair value, options vested in period (in dollars per share) | $ 11.54 | $ 15 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - Interest rate swap $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)interest_rate_swap_transaction | Dec. 31, 2020USD ($)interest_rate_swap_transaction | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | |||
Number of interest rate swap transactions (in interest rate swap transactions) | interest_rate_swap_transaction | 17 | 18 | |
Notional principal | $ 677.8 | $ 759.1 | |
Derivative asset | 5.9 | 0.1 | |
Derivative liability | 4.8 | 23.4 | |
Unrealized gain (loss) on derivatives | $ 18.4 | $ (25.2) | $ (1.6) |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Derivative Notional Amounts (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Derivative Instrument 2.15% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 50,000 |
Fixed Interest Rate | 2.15% |
Derivative Instrument 2.15% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 50,000 |
Fixed Interest Rate | 2.15% |
Derivative Instrument 1.38% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 75,000 |
Fixed Interest Rate | 1.39% |
Derivative Instrument 1.40% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 50,000 |
Fixed Interest Rate | 1.38% |
Derivative Instrument 1.39% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 1.38% |
Derivative Instrument 1.38% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 75,000 |
Fixed Interest Rate | 1.43% |
Derivative Instrument 1.38% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 46,875 |
Fixed Interest Rate | 0.35% |
Derivative Instrument 1.43% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 23,438 |
Fixed Interest Rate | 0.35% |
Derivative Instrument 0.35% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 35,000 |
Fixed Interest Rate | 1.03% |
Derivative Instrument 0.35% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 1.22% |
Derivative Instrument 1.03% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 1.22% |
Derivative Instrument 1.22% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 0.37% |
Derivative Instrument 1.22% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 47,500 |
Fixed Interest Rate | 0.41% |
Derivative Instrument 0.37% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 1.38% |
Derivative Instrument 0.41% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 1.40% |
Derivative Instrument 0.45% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 50,000 |
Fixed Interest Rate | 0.74% |
Derivative Instrument 0.45% Fixed Rate | |
Derivative [Line Items] | |
Notional principal | $ 25,000 |
Fixed Interest Rate | 0.35% |
SHORT-TERM AND LONG-TERM DEBT -
SHORT-TERM AND LONG-TERM DEBT - Components (Details) - USD ($) | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | Jul. 31, 2019 |
Debt Instrument [Line Items] | |||||
Total debt | $ 1,652,432,000 | $ 1,419,259,000 | |||
Current portion of debt | (85,879,000) | (68,340,000) | |||
Long-term portion of debt issuance costs | (14,606,000) | (13,906,000) | |||
Long-term debt | 1,551,947,000 | 1,337,013,000 | |||
$100 million Secured Term Loan and Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 100,000,000 | ||||
$629 Million Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 629,000,000 | ||||
Floating rate debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 1,157,523,000 | 1,088,905,000 | |||
Floating rate debt | $250 Million Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 250,000,000 | ||||
Total debt | 220,313,000 | 232,813,000 | |||
Floating rate debt | $100 million Secured Term Loan and Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | $ 100,000,000 | |||
Floating rate debt | $50 million term loan under $100 Million Facility | |||||
Debt Instrument [Line Items] | |||||
Total debt | 44,080,000 | 46,711,000 | |||
Floating rate debt | Flex Rainbow Sale and Leaseback | |||||
Debt Instrument [Line Items] | |||||
Total debt | 131,906,000 | 139,781,000 | |||
Floating rate debt | $629 Million Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 629,000,000 | ||||
Total debt | 613,512,000 | 513,200,000 | |||
Floating rate debt | Flex Amber Sale and Leaseback | |||||
Debt Instrument [Line Items] | |||||
Total debt | 147,712,000 | 156,400,000 | |||
Fix Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 430,829,000 | 283,643,000 | |||
Fix Rate Debt | Hyundai Glovis Sale and Charterback | |||||
Debt Instrument [Line Items] | |||||
Total debt | 271,381,000 | 283,643,000 | |||
Fix Rate Debt | Flex Volunteer Sale | |||||
Debt Instrument [Line Items] | |||||
Total debt | 159,448,000 | 0 | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total debt | 64,080,000 | 46,711,000 | |||
Line of Credit | $50 million term loan under $100 Million Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount | 50,000,000 | ||||
Line of Credit | $70 Million Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Face amount | 70,000,000 | ||||
Total debt | $ 64,080,000 | $ 46,711,000 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBT - Capital Commitments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 85,879 |
2023 | 86,965 |
2024 | 363,354 |
2025 | 329,314 |
2026 | 79,716 |
Thereafter | 707,204 |
Total | $ 1,652,432 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBT - Narrative (Details) | Jul. 19, 2019USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($)subsidiary | Feb. 29, 2020USD ($)buildingsubsidiary | Jul. 31, 2019USD ($)vessel | Apr. 30, 2019USD ($)vessel | Jul. 31, 2018USD ($) | Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | May 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Aug. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt, outstanding balance | $ 1,652,432,000 | |||||||||||||
Flex Aurora | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Purchase obligation | $ 125,800,000 | |||||||||||||
Flex Artemis | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Purchase obligation | 135,800,000 | |||||||||||||
Flex Resolute | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Purchase obligation | 125,800,000 | |||||||||||||
Flex Freedom | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Purchase obligation | 125,800,000 | |||||||||||||
Flex Vigilant Limited | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Purchase obligation | $ 123,300,000 | |||||||||||||
Flex Volunteer Limited | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Purchase obligation | $ 100,000,000 | |||||||||||||
Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Book equity ratio | 0.25 | |||||||||||||
Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Book equity ratio | 1 | |||||||||||||
LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Increase in limit | $ 20,000,000 | |||||||||||||
Loan Covenant | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 25,000,000 | |||||||||||||
Term | 6 months | |||||||||||||
Loan covenant (in percent) | 5.00% | |||||||||||||
$250 million Secured Term Loan Facility | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 250,000,000 | |||||||||||||
Number of vessel owning subsidiaries | vessel | 2 | |||||||||||||
Debt outstanding | $ 125,000,000 | $ 125,000,000 | ||||||||||||
Term | 5 years | |||||||||||||
Long-term debt, outstanding balance | $ 219,200,000 | 230,900,000 | ||||||||||||
$250 million Secured Term Loan Facility | Secured Debt | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate (percent) | 2.35% | |||||||||||||
$100 million Secured Term Loan and Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 100,000,000 | |||||||||||||
Term | 5 years | |||||||||||||
$100 million Secured Term Loan and Revolving Credit Facility | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 50,000,000 | |||||||||||||
Credit facility, outstanding balance | 108,100,000 | 93,300,000 | ||||||||||||
$100 million Secured Term Loan and Revolving Credit Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate (percent) | 2.25% | 2.25% | ||||||||||||
Increase in limit | $ 20,000,000 | |||||||||||||
$100 million Secured Term Loan and Revolving Credit Facility | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 50,000,000 | |||||||||||||
Number of vessel owning subsidiaries | vessel | 1 | |||||||||||||
$315 Million Term Loan Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 315,000,000 | |||||||||||||
$315 Million Term Loan Facility | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 315,000,000 | |||||||||||||
Prepaid amount | $ 99,800,000 | |||||||||||||
$629 Million Term Loan Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 629,000,000 | |||||||||||||
Number of vessel owning subsidiaries | subsidiary | 5 | |||||||||||||
Number of buildings under financing | building | 5 | |||||||||||||
$629 Million Term Loan Facility | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt, outstanding balance | 602,100,000 | 502,800,000 | ||||||||||||
$629 Million Term Loan Facility | Commercial Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 250,000,000 | $ 10,000,000 | ||||||||||||
Term | 5 years | |||||||||||||
$629 Million Term Loan Facility | Commercial Loan | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate (percent) | 2.35% | |||||||||||||
$629 Million Term Loan Facility | Guaranteed Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 189,100,000 | |||||||||||||
Term | 6 years | |||||||||||||
$629 Million Term Loan Facility | Guaranteed Loan | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate (percent) | 1.20% | |||||||||||||
$629 Million Term Loan Facility | Direct Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 189,900,000 | |||||||||||||
Term | 12 years | |||||||||||||
$629 Million Term Loan Facility | Direct Loan | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis spread on variable rate (percent) | 2.25% | |||||||||||||
$629 Million Term Loan Facility | Accordion Option | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 10,000,000 | |||||||||||||
$125 Million Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 125,000,000 | $ 125,000,000 | ||||||||||||
Basis spread on variable rate (percent) | 2.85% | |||||||||||||
$125 Million Facility | Revolving credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 25,000,000 | |||||||||||||
$125 Million Facility | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Long-term debt, outstanding balance | 120,300,000 | |||||||||||||
$125 Million Facility | Guaranteed Loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Term | 5 years | |||||||||||||
$125 Million Facility | Term loan | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount | $ 100,000,000 | |||||||||||||
Flex Rainbow Sale and Leaseback | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Lease period | 10 years | |||||||||||||
Gross price | $ 210,000,000 | |||||||||||||
Advance for hire | $ 52,500,000 | |||||||||||||
Net balance under the sale and leaseback agreement | 131,100,000 | 138,800,000 | ||||||||||||
Flex Rainbow Sale and Leaseback | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate (percent) | 3.50% | |||||||||||||
Hyundai Glovis Sale and Charterback | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of vessel owning subsidiaries | vessel | 2 | |||||||||||||
Sale price | $ 210,000,000 | |||||||||||||
Consideration transferred | 150,000,000 | |||||||||||||
Credits | $ 60,000,000 | |||||||||||||
Charter period | 10 years | |||||||||||||
Sale back consideration | $ 75,000,000 | |||||||||||||
Net outstanding balance under the sale and charterback lease agreement | 269,500,000 | 281,300,000 | ||||||||||||
Flex Amber Sale and Leaseback | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of vessel owning subsidiaries | subsidiary | 1 | |||||||||||||
Basis spread on variable rate (percent) | 3.20% | |||||||||||||
Sale and Leaseback Agreement, Sale Price | $ 206,500,000 | |||||||||||||
Sale and Leaseback Agreement, Consideration Transferred | 156,400,000 | |||||||||||||
Sale and Leaseback Agreement, Advance Hire Adjustment | $ 50,100,000 | |||||||||||||
Sale and Leaseback Agreement, Charter Period | 10 years | |||||||||||||
Sale and leaseback agreement, lease period | 10 years | |||||||||||||
Sale and Leaseback Agreed Purchase Price | $ 69,500,000 | |||||||||||||
Net outstanding balance under the sale and leaseback lease agreement | $ 146,000,000 | $ 154,400,000 | ||||||||||||
Flex Volunteer Sale and Leaseback | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of vessel owning subsidiaries | subsidiary | 1 | |||||||||||||
Term | 10 years | |||||||||||||
Sale and Leaseback Agreement, Sale Price | 215,000,000 | |||||||||||||
Sale and Leaseback Agreement, Consideration Transferred | $ 80,000,000 | $ 160,000,000 | ||||||||||||
Sale and Leaseback Agreement, Charterers' Down Payment | 55,000,000 | |||||||||||||
Sale and Leaseback Agreement, Prepaid Outstanding Balance | 120,300,000 | |||||||||||||
Sale and Leaseback Agreement, Remaining Balance After Fees and Expenses | 37,700,000 | |||||||||||||
Net outstanding balance under the sale and leaseback lease agreement | $ 157,400,000 | |||||||||||||
Flex Volunteer Limited | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of vessel owning subsidiaries | subsidiary | 1 |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES - Schedule of Estimated Fair Value and Carrying Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying value of asset (liability) | Level 1 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Cash and cash equivalents | $ 200,652 | $ 128,878 |
Restricted Cash | 518 | 84 |
Carrying value of asset (liability) | Level 2 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative instruments | 5,862 | 109 |
Derivative instruments | (4,764) | (23,434) |
Carrying value of asset (liability) | Level 2 | Floating rate debt | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Long-term debt | (1,206,522) | (1,120,172) |
Carrying value of asset (liability) | Level 2 | Fixed rate debt | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Long-term debt | (426,897) | (281,307) |
Fair value asset (liability) | Level 1 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Cash and cash equivalents | 200,652 | 128,878 |
Restricted Cash | 518 | 84 |
Fair value asset (liability) | Level 2 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Derivative instruments | 5,862 | 109 |
Derivative instruments | (4,764) | (23,434) |
Fair value asset (liability) | Level 2 | Floating rate debt | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Long-term debt | (1,221,603) | (1,135,616) |
Fair value asset (liability) | Level 2 | Fixed rate debt | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Long-term debt | $ (465,287) | $ (306,621) |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related Party Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 228 | $ 166 |
Affiliate | ||
Related Party Transaction [Line Items] | ||
Due to related parties | (348) | (312) |
Affiliate | Seatankers Management Norway AS | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 18 | 0 |
Affiliate | Frontline Ltd | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 162 | 135 |
Affiliate | Frontline Management (Bermuda) Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | (85) | (29) |
Affiliate | Frontline Corporate Services Ltd | ||
Related Party Transaction [Line Items] | ||
Due to related parties | (30) | (13) |
Affiliate | Frontline Management AS | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 1 | 0 |
Due to related parties | 0 | (33) |
Affiliate | Flex LNG Fleet Management AS | ||
Related Party Transaction [Line Items] | ||
Due to related parties | (232) | (234) |
Affiliate | SFL Corporation Ltd | ||
Related Party Transaction [Line Items] | ||
Due to related parties | (1) | (2) |
Affiliate | Northern Ocean Limited | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 47 | 31 |
Affiliate | Golden Ocean Management AS | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 0 | $ (1) |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Transactions with Other Affiliates of Geveran (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Frontline Management AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ (500) | $ (300) | $ (1,000) |
Front Ocean Management AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (100) | ||
Affiliate | Seatankers Management Co. Ltd | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (144) | (312) | (548) |
Affiliate | Seatankers Management Norway AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (59) | (81) | (84) |
Affiliate | Frontline Management (Bermuda) Limited | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (288) | (122) | (711) |
Affiliate | Frontline Ltd | |||
Related Party Transaction [Line Items] | |||
Related party revenue | (2) | 17 | 0 |
Affiliate | Frontline Management AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (184) | (154) | (336) |
Affiliate | Flex LNG Fleet Management AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (3,235) | (1,795) | (223) |
Affiliate | SFL Corporation Ltd | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 0 | (2) | 0 |
Affiliate | FS Maritime SARL | |||
Related Party Transaction [Line Items] | |||
Related party expenses | (337) | (225) | 0 |
Affiliate | Northern Ocean Limited | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 7 | 0 | 0 |
Affiliate | Golden Ocean Management AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ (1) | 0 | 0 |
Affiliate | Front Ocean Management AS | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CHF (SFr) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Front Ocean Management AS | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | $ 55 | |||
Flex Constellation and Flex Courageous | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | $ 190,300 | |||
Flex Aurora, Flex Artemis, Flex Resolute and Flex Amber | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | $ 557,700 | |||
Flex Vigilant Limited | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 385,600 | |||
Front Ocean Management AS | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 100 | |||
Front Ocean Management AS | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 0 | 0 | ||
Frontline Management AS | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 500 | 300 | 1,000 | |
Frontline Management AS | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 184 | 154 | 336 | |
Seatankers Management Co. Ltd | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 144 | 312 | 548 | |
Seatankers Management Co. Ltd | Advisory and support services | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 100 | 300 | 500 | |
Flex LNG Fleet Management AS | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 3,235 | 1,795 | 223 | |
Flex LNG Fleet Management AS | Technical management and support services | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | 3,200 | 1,800 | $ 200 | |
Flex LNG Fleet Management AS | Consultancy services | Affiliate | ||||
Related Party Transaction [Line Items] | ||||
Related party transactions, costs | $ 300 | $ 200 | ||
Related party transaction, maximum annual consulting fee | SFr | SFr 437,995 |
MINIMUM COMMITTED REVENUE - Nar
MINIMUM COMMITTED REVENUE - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred charter revenue included in trade accounts receivables | $ 5,270 | $ 4,050 |
Deferred charter revenue | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred charter revenue included in trade accounts receivables | $ 5,300 |
MINIMUM COMMITTED REVENUE - Com
MINIMUM COMMITTED REVENUE - Committed Time Charter Revenues (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 264,901 |
2023 | 234,265 |
2024 | 199,266 |
2025 | 75,105 |
2026 | 30,254 |
Thereafter | 3,069 |
Total | $ 806,860 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | |||
Feb. 28, 2022USD ($)agreementsderivative_instrument | Feb. 06, 2022$ / shares | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Interest rate swap | ||||
Subsequent Event [Line Items] | ||||
Notional principal | $ 677,800,000 | $ 759,100,000 | ||
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Dividends per share (USD per share) | $ / shares | $ 0.75 | |||
Subsequent event | Interest rate swap | ||||
Subsequent Event [Line Items] | ||||
Number of interest rate swap agreements | derivative_instrument | 3 | |||
Term of swaps | 10 years | |||
Weighted average interest rate (percent) | 1.70% | |||
Notional principal | $ 200,000,000 | |||
Subsequent event | 320 Million Sale and Leaseback | ||||
Subsequent Event [Line Items] | ||||
Age adjusted term | 20 years | |||
Basis spread on variable rate (percent) | 2.50% | |||
Gross price | $ 320,000,000 | |||
Number of separate Sale and bareboat agreements | agreements | 2 | |||
Sale and leaseback, consideration paid | $ 160,000,000 | |||
Sale and leaseback agreement, lease period | 10 years | |||
Sale leaseback transaction, repurchase period | 3 years | |||
Sale and leaseback agreement, option to repurchase vessel | $ 66,500,000 | |||
Subsequent event | 375 Million Facility | ||||
Subsequent Event [Line Items] | ||||
Non-amortizing revolving credit facility | $ 375,000,000 | |||
Age adjusted term | 22 years | |||
Basis spread on variable rate (percent) | 2.10% | |||
Subsequent event | 375 Million Facility | Accordion Option | ||||
Subsequent Event [Line Items] | ||||
Non-amortizing revolving credit facility | $ 125,000,000 | |||
Subsequent event | 375 Million Facility | Accordion Option | Maximum | ||||
Subsequent Event [Line Items] | ||||
Period in which company may elect accordion feature | 36 months | |||
Subsequent event | $125 Million Term Loan Facility | ||||
Subsequent Event [Line Items] | ||||
Term | 6 years | |||
Subsequent event | $125 Million Term Loan Facility | Secured Debt | ||||
Subsequent Event [Line Items] | ||||
Non-amortizing revolving credit facility | $ 125,000,000 | |||
Subsequent event | $250 Revolving Credit Facility | Revolving credit facility | ||||
Subsequent Event [Line Items] | ||||
Non-amortizing revolving credit facility | $ 250,000,000 |